city of waycross, georgia annual financial · pdf filestatement of activities and changes in...

CITY OF WAYCROSS, GEORGIA

ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED JUNE 30, 2016

CITY OF WAYCROSS, GEORGIA TABLE OF CONTENTS

FINANCIAL SECTION

INDEPENDENT AUDITOR'S REPORT

MANAGEMENT'S DISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements:

Statement of Net Position - Government-Wide

Statement of Activities and Changes in Net Position - Government-Wide

Governmental Fund Financial Statements:

Balance Sheet - Governmental Funds

Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position

Statement of Revenues, Expenditures and Changes in Fund BalancesGovernment Funds

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position

Proprietary Fund Financial Statements:

Statement of Net Position - Proprietary Funds

Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds

Statement of Cash Flows - Proprietary Funds

Agency Fund Financial Statements:

Statement of Fiduciary Assets and Liabilities

Notes to the Financial Statements

REQum.ED SUPPLEMENALJNFORMATION: ~

Schedule of Changes in the Net Pension Liability - Last I 0 Fiscal Years

Schedule of Pension Contributions - Last 10 Fiscal Years

Notes to Pension Schedules

Schedule of Funding Progress - Other Post-Employment Benefits

1-3

4-12

13

14

15

16

17

18

19-20

21

22

23

24-56

57

58

59-60

61

Major Funds -


Budgetary Comparison Schedule - General Fund

COMBINING AND INDIVIDUAL FUND SCHEDULES:

Major Funds-

62

Budgetary Comparison Schedule- Major Capital Project Fund- SPLOST 2008-2013 Fund 63

Budgetary Comparison Schedule - Major Capital Project Fund - SPLOST 2014 Fund 64

Non-major Governmental Funds -

Combining Balance Sheet

Combining Statement of Revenues, Expenditures and Changes in Fund Balance

Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Non-major Governmental Funds:

Cemetery Fund

Forfeited Property Fund

Jail Fund

WPD Information Technology Fund

Community Development Fund

EIP Revolving Loan Fund

Fire Department Fund

FEMA Grants Fund

Misc Grants Fund

Hotel/Motel Tax Fund

Misc Fund

Cemetery Trust Fund

Wayfest Fund

Lt Jeff Little Scholarship Fund

A TM Machine Fund

SPLOSTFund

65-67

68-70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

Capital Reserve Fund

LMIGFund

Internal Service Funds -


Combining Statement ofNet Position

Combining Statement of Revenues, Expenditures and Changes in Net Position

Combining Statement of Cash Flows

Fiduciary Funds -

Combining Statement of Assets and Liabilities - Agency Funds

SPECIAL REPORTS SECTION

Independent Auditors' Report on Compliance with Requirements applicable to Based on an Audit of Financial Statements Performed in Accordance With Govemment Auditing Standards

Schedule of Projects Constructed with Special Sales Tax Proceeds

STATISTICAL SECTION

Schedules of

General Government Expenditures by Function General Government Revenues by Source Tax Revenues by Source Property Tax. Levies and Collections Assessed and Estimated Actual Value of Taxable Property Assessed Value by Class of Tangible Property Property Tax. Rates Ratio of General Bonded Debt to Assessed Value and Bonded Debt Ratio of Debt Service to Total General Expenditures Computation of Legal Debt Margin and Direct and Overlapping Debt Revenue Bond Coverage - Water and Sewer Principal Water and Sewer Customers Principal Tax.payers Miscellaneous Statistics Selected Water and Sewer Information

87

88

89-90

91-92

93-94

95

96-97

98-102

103 104 105 106 107 108 109 110 1 ll 112 113 114 115 116 117

Henderson & Godbee, LLP Certified Public Accountants and Business Consultants Members of American Institute of Certified Public Accountants• Georgia Society of Certified Public Accountants

Roherl A. Goddnrd,.lr., CPA (19.tJ-1989) Gcrnld H. lknderMm, CPA .I. \\endell Gnclbt•t•, CPA \lurk S. lfoi:t•rs, Cl'.\ .Jn mes W. Godbt•t•, .Ir., CPA \laun·l·n I'. C1111i11~. C'I'.\ k:1·1 in n. Hiers, ('PA. ('\'A I roy I>. Nm ham. Cl'.\ Armmda W. Shapard.< ·rA Sroll It Simp,on. <'I'.\ INDEPENDENT AUDITOR'S REPORT

To the Honorable Mayor and Members of the City Commission City of Waycross, Georgia

Report on the Financial Statements

.I. Philip\ ouni:. Cl',\ Rillie A. fiaxln, Cl'A

Mae:\ .. Johnson. CPA k:rrh·~ T. Collins, Cl'.\

Kaitlyn E. 1111111111~. CPA C11ssil' R. llagJ!t'll, Cl'.\ h:ala \I. lknnell. Cl'.\

Ja1·ry H. l'irtnurn. Cl'.\ \I. .\Iii son I ltrlrhins. Cl'·\

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Waycross, Georgia, as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and.fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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To the Honorable Mayor and Members of the City Commission City of Waycross, Georgia Page Two

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Waycross, Georgia, as of June 30, 2016, and the respective changes in financial position and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis (on pages 4 through 12), budgetary comparison information (on page 62), and the schedules of historical pension information and related notes (on pages 57 through 61) be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Waycross, Georgia's financial statements as a whole. The combining and individual non-major fund financial statements, internal service funds, fiduciary funds, the Schedules of Projects Constructed with Special Sales Tax Proceeds and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements.

The combining and individual non-major fund financial statements, internal service funds, fiduciary funds, and the Schedules of Projects Constructed with Special Sales Tax Proceeds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

To the Honorable Mayor and Members of the City Commission City of Waycross, Georgia Page Three

Report Issued in Accordance with Government Auditing Sta11dards

In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2016 on our consideration of City of Waycross, Georgia's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Waycross, Georgia's internal control over financial reporting and compliance.

Certified Public Accountants Valdosta, Georgia

November 30, 2016


Our discussion and analysis of the City of Waycross' financial performance provides an overview of the City's financial activities for the fiscal year ended June 30, 2016. Please read it in conjunction with the City's financial statements, which begin on page 13.

Financial Highlights

The City continues to operate in a manner that cash balances are adequate to finance day-to-day operations without short term borrowings such as tax anticipation notes. However, long term financing is used for equipment and other major projects.

The largest source of funds for the general fund is local option sales taxes and property taxes accounting for over 68% of the budget. During 2016, sales taxes had a modest decrease from the prior year. During 2015, sales taxes decreased again from the prior year. Collections decreased 3 .5 percent over fiscal year 2016.

The impact of the economic growth in our community has been stable again this year. The restaurant and retail clientele is continuing to expand. The millage rate has remained at 10.998 mills since 2009. However, the Adjusted Net Digest increased by $955,589. In fiscal year 2014, the fund balance was $398,090. At the end of 2015, the fund balance increased $61,181 resulting in a fund balance of $459,271. For fiscal year 2016, the ending fund balance is $463,555. A 7% increase in the insurance premium taxes played a small factor in the increase of the Fund Balance. The other revenues collected were 5% lower than projected and the expenditures were less than I% than the revenue collected. As economic conditions improve, this balance will be increased to serve as a cushion during periods of economic volatility.

The City has a long range plan to identify and quantify the infrastructure needs of our community. The 2008 SPLOST has addressed those needs as it relates to public buildings, streets and major equipment. Since inception, $10,926,830 has been collected and $1,369,332 has been spent on fire and special purpose vehicles, $2,682,447 on street improvements, $60,921 on technology improvements, $76,458 on property acquisitions, $387,259 on Downtown Development Authority projects, $3,259,379 on building improvements (including City Auditorium), and $456, I 54 on water and sewer rehabilitation and expansion. In November 2014, the City started receiving funds for the SPLOST 2014. This is another six year I percent sales tax that picked up where the 2008 SPLOST ended. The City anticipates collecting around 15,472,000 during the next six years. As of June 30, 2016, the City had collected $3,921,676 in revenue. These funds will be used to improve roads and streets, water & sewer rehabilitations, public facility improvements, public safety and special vehicle fleet, city park improvements, and other projects. As of June 30, 2016, $488,543 has been spent on public facility improvements, $254,699 on public safety and special vehicle fleet, $44,345 on city park improvements, and $6,709 on information technology. The remaining funds from both SPLOST will continue to be spent within the next following year.

In the public utilities business-type activities (water and sewer services}, revenues exceeded expenses by $380,634. Significant infrastructure replacements to the sewer collection system are necessary to efficiently provide this service. In fiscal year 2012, the new rate structure was implemented. The rates were based on a rate study that insures the rates are adequate to fund necessary improvements. Continued infrastructure replacements are included in our long range plans and will be funded by current operations and implementation in fiscal year 2017.

4


The waste management business-type activity revenues exceeded expenses by $39,152. Due to the closing of the county's landfill, the city had to start outsourcing the grinding of yard debris. During the fiscal year 20 I 5 the City started a new service at no cost to our customers, removing brown/white goods weekly from the residents curb side. This has continued to be a positive change as of today.

How These Statements Were Prepared

The City's basic financial statements are comprised of three components: I) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary financial infonnation in addition to the basic financial statements.

Government-wide Financial Statements

The government-wide financial statements beginning on page 13 are designed to provide readers with a broad, long-tenn view of the City's finances, in a manner similar to private sector business. They include all assets and liabilities using the accrual basis of accounting. All of the current revenue and expenses are taken into account regardless of when the cash is received or paid.

The Statement of Net Position presents infonnation on all of the City's assets and liabilities, with the difference between the two reported as net position. It serves as one measure of the City•s financial health or financial position. Over time, increases or decreases in net position may serve as a useful indicator whether the financial health of the City is improving or deteriorating. Other nonfinancial factors also impact the health of the City, such as changes in the property tax base and the condition of the City's roads.

The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or significant portions of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government and administration (mayor and council, city manager, finance, purchasing, human resources and engineering), public safety (police and fire), public works, cemetery and community development (grants, codes, planning, zoning, and inspections). The business-type activities of the City include water and sewer services, waste management which incluC:tes yard trash and garbage pick-up, and the City auditorium activities.

Fund Financial Statements

The fund financial statements beginning on page 15 provide detailed information about the most significant funds - not the City as a whole. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. For governmental activities, these statements tell how these services were financed in the short-tenn as well as what remains for future spending. Some funds are required to be established by State law and bond covenants. The City has established other funds to help control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants or other money. The City's two kinds of funds - governmental and proprietary- use different accounting approaches and are described further below.

Governmental Funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. Unlike the government-wide financial statements, governmental fund financial statements focus on current sources and uses of spendable resources, as

5


well as on balances of spendable resources at the end of the fiscal year. Such infonnation may be useful in evaluating a government's short-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near term financing decisions. Both the governmental funds balance sheets and the governmental funds statements of revenues, expenditures and changes in fund balances provides a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains 24 governmental funds. Information is presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, the SPLOST 2008-2013 Fund, and the SPLOST 2014 Fund which are considered to be major funds. Data for the other 20 funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental funds financial statements can be found on pages 15 and 17.

Proprietary Funds - The City maintains three types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water and sewer, sanitation, and City auditorium operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses its internal funds to account for its fleet services, risk management, and employee benefit programs. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Public Utilities and Waste Management Funds since both are considered to be major funds of the City. All internal service funds are combined into a single aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 19-22 of this report.

Notes to Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 24-56.

Other Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. The required supplementary information can be found on pages 57-62 of this report.

The combined statements referred to earlier in connection with non-major governmental funds and internal service funds are presented following the required supplementary information. Combined and individual statements and schedules can be found on pages 63-70 and 71-95 of this report.

6


The City as Trustee

The City is the trustee, or fiduciary of certain assets. All of the City's fiduciary activities are reported in a separate Statement of Fiduciary Assets and Liabilities on page 23. We excluded these activities from the City's other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for the intended purpose.

Governmental-Wide Financial Analysis

As noted earlier, net position may serve over time as a useful indicator of the government's financial position. In the case of the City of Waycross, assets exceeded liabilities by $45,096,431 as of June 30, 2016. The tables below should be read in conjunction with the financial statements on pages 13-14.

Current and other assets Capital Assets Total Assets

Deferred Outflows of Resources

Long-term debt outstanding Other liabilities Total liabilities

Deferred Inflows of Resources

Net Position: Net Investment in

capital assets Restricted Unrestricted Total Net Position

Statement of Net Position Governmental

Activities

2016 $ 8,290,879

18,926,814 27,217,693

2,350,937

$ 9,141,662 2,378,236

11,519,898

677,854

$ 18,083,130 6,144,865

(6,857,117) $ 17,370,878

2015 $ 7,922,528

18,252,390 26,174,918

992,041

$ 7,969,316 1,598,504 9,567,820

958,191

$ I 7,255,867 5,728,610

(6,343,529) $ 16,640,948

Business-fype Activities Total

2016 2015 2016 2015 $ 2,820,959 $ 2,628,393 $ 11,111,838 $ 10,550,921

30,931,550 31,408,476 49,858,364 49,660,866 33,752,509 34,036,869 60,970,202 60,211,787

2,350,937 992,041

$ 5,775,442 $ 6,405,095 $ 14,917,104 $ 14,374,411 251,514 239,4 I 9 2,629,750 1,837,923

6,026,956 6,644,514 17,546,854 16,212,334

677,854 958,191

$ 25,169,927 $ 25,014,006 $ 43,253,057 $ 42,269,873 6,144,865 5,728,610

2,555,626 2,378,349 _(,_4"-,3_01...:..,4_9_.1>~_,,,(3...:..,9_6.....;5,'"-l8_0.._) $ 27,725,553 $ 27,392,355 $ 45,096,43 I $ 44,033,303

The largest portion of the City's net position (82%) reflects its investment in capital assets (e.g. land, building, equipment, improvements, construction in progress, and infrastructure), less any debt issued to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

7


The net position of the City's governmental activities increased by $729,930. A portion of the City's net position,

$6, 144,865, represents resources that are subject to external restriction on how they may be used. The unrestricted

portion of net position, $6,857,117 may be used to meet the government's ongoing obligation to citizens and creditors.

The net position of the City's business-type activities increased by a difference of$333, 198. The City can only use

this net position to finance the continuing operations of the public utilities (water and sewer), waste management (garbage and yard trash pickup/disposal), and city auditorium.

Change in Net Position Governmental Business-Type

Activities Activities Total 2016 2015 2016 2015 2016 2015

Program Revenues Charges for Services $1,559,382 $1,641,599 $6,296,052 $6,116,515 $7,855,434 $7,758,114 Operating Grants 165,250 357,374 165,250 357,374 Capital Grants 2,664,285 2,076,085 410,035 314,710 3,074,320 2,390,795

General Revenues Property Taxes 3,140,361 3,089,955 3,140,361 3,089,955 Sales Tuxes 2,780,778 2,941,339 2,780,778 2,941,339 Franchise Fees 1,200,642 1,212,752 1,200,642 1,212,752 Other Taxes 2,040,220 2,005,388 2,040,220 2,005,388 Investment Earnings 2,365 1,006 400 919 2,765 1,925 Other 151614 71573 151614 7,2.73

Total Revenues 13,5681897 13,333,071 6,706,487 6,432,144 20,2751384 191765,215

Program Expenses General Government 415,416 279,853 415,416 279,853 Public Safety 7,682,373 7,827,429 7,682,373 7,827,429 Public Works 3,742,118 3,840,746 3,742,118 3,840,746 Community Development 979,958 1,096,252 979,958 1,096,252 Interest 19,102 17,870 19,102 17,870 Public Utilities 4,337,764 4,249,079 4,337,764 4,249,079 Waste Management 1,883,887 1,889,157 1,883,887 1,889,157 City Auditoriwn 1511638 1581844 151,638 l 58,844

Total Expenses 1218381967 1310621150 613731289 612971080 1912121256 19J591230 Increase in net position $ 7291930 $ 2701921 $ 3331198 $ 135,064 $1,063,128 $ 405,985

The City's total combined activities revenue decreased by $5I0,169 (3 percent) and the total combined expenses

decreased by $146,974 (I percent).

The analysis below separately considers the operations of governmental and business-type activities.

8


Governmental Activities

The format of the Statement of Activities is significantly different than a typical statement of Revenues, Expenses and Changes in Fund Balance. Expenses are listed in the first column with the related revenues reported to the right The result is net (expense) revenue. This format highlights the relative financial burden of each of the functions on the City's taxpayers. It also identifies how much each function draws from the general revenues or if it is self-financing through fees and grants. Some of the individual line item revenues reported for each function are:

General Government building permits, occupational licenses, inspection fees public safety fines and forfeitures, grants, Public Works capital grants for infrastructure improvements, Cemetery Lot sales and interment fees.

All other governmental revenues are reported as general. It is important to note that all taxes are classified as general revenue even ifrestricted for a specific purpose.

Governmental Net Cost Activities of Services

2016 2015 2016 2015 General Government $ 415,416 $ 279,853 $ (639,463) $ (903,483) Public Safety 7,682,373 7,827,429 6,059,274 6,436,239 Public Works 3,742,118 3,840,746 2,318,595 2,623,908 Community Development 979,958 1,096,252 692,542 812,558 Interest on Long-Term Debt 191102 171870 191102 171870

Total Expenses $ 12,838,967 $ 1310621150 $ 814501050 $ 819871092

The net expense of operating Governmental Activities decreased from $8,987,092 to $8,450,050 or 6 percent. General revenues decreased 1 percent or $78,033 from $9,258,013 in 20fS to $9,179,980 in 2016.

Business-Type Activities

The City's business-type activities continue to be operated in a manner to cover all operating costs. Rates charged for these services remained the same. The Public Utilities Fund-Water and Sewer has begun a long range plan to perform critical infrastructure replacements to ensure the City is able to continue to provide quality services. A rate study has been completed and was implemented in fiscal year 2012 to adjust rates to adequately fund these improvements.

The City's Funds

· As the City completed the year, its governmental funds (as presented on page 15) reported a combined fund balance of $6,721,134. Included in this total fund balance is the fund balance of the General Fund of $463,SSS which compares to a prior balance of $459,27 l in 20 l S. This fund balance will assist the City in weathering the current economic slowdown and unanticipated events; however, the balance has been substantially reduced during the economic down tum. As the economy improves, this balance will be increased to provide a cushion for the current economic volatility. Should conditions not improve, services may be curtailed or taxes and fees increased.

9


General Fund Budgetary Highlights

Actual revenues for 2016 did not meet the budgeted amount by $808, 756 or 7 percent and expenses did not exceed the budget by $813,040 or 7 percent. The revenues for taxes were 7% lower than budgeted. Even with the decrease of 5% from sales tax, other tax revenues were slightly lower than the City had anticipated. For example, the franchise fees collected were $12, 110 lower than 2015 collections. All operating expenditures were within budget. A more detailed comparison is on page 62.

Capital Assets

At June 30, 2016, the City had approximately $50 million invested in a broad range of capital assets, including police and fire equipment, buildings, water and sewer lines, and a treatment plant. This amount represents a net increase (additions and deductions) of $197,497 over the last year. The table below provides further analysis of these capital assets.

Capital Assets at Year End Gowmmental Business-Type


Land $ 5,045,380 $ 5,045,380 $ 235,859 $ 235,859 $ 5,281,239 $ 5,281,239 Construction in Progress 968,314 574,684 157,955 275,051 1,126,269 849,735 Buildings/Improvements 8,824,781 8,792,244 12,194,322 12,194,322 21,019,103 20,986,566 Equipment and Vehicles 8,610,624 8,349,451 5,621,409 5,505,914 14,232,033 13,855,365 Infrastructure 35,373,361 34,552,947 50,212,222 49,713,956 85,585,583 84,266,903 Accumulated Depreciation {39!8951646} {3910621316} {3714901217) {3615161625} (77 13 851863} {7515781941} Total Assets $1819261814 $1812521390 $3019311550 $3114081477 $4918581364 $4916601867

Additional infonnation on the City of Waycross' capital assets can be found in footnote 7 on pages 37 and 38 of this report.

Debt Administration

At year end, the City had $6,605,307 in bonds, notes, and capital leases outstanding versus $7,390,993 last year, a decrease of 11 percent as shown in the following table:

Outstanding Debt at Year End Governmental Business-Type


Capital Leases $ 231,183 $ 354,023 $ 191,656 $ $ 422,839 $ 354,023 Notes 6121500 6421500 515691968 613941470 6,1821468 7,0361970 Total Debt $ 843,683 $ 9961523 $517611624 $613941470 $616051307 $713901993

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During the fiscal year ended June 30, 2016 and 2015, the financial condition of the City did not require short-tenn borrowings to finance governmental operations until property taxes were collected.

Additional infonnation on the City of Waycross' long-tenn debt can be found in footnote 8 on pages 39 through 42 of this report.

Economic Factors and Next Year's Budgets and Rates

The City's elected and appointed officials considered many factors when setting the fiscal year 2016 budget. In prior years increased operating costs have been funded from increases in the tax digest, primarily in commercial retail property, and increased sales taxes. The economic downturn has adversely impacted these increases. During fiscal year 2016, the local option sales tax revenues decreased by 5 percent or $160,561. In fiscal year 2010, the property tax collection began to decrease significantly. The millage rate was increased from 9.998 to I 0.998 to maintain the same level of service in 2010. Recently, the city and county came to an agreement on the local option sales tax split. All upcoming budget years will hav~ to be adjusted to the following. As it stands now, the county will .receive an increase in funding of 3.5%. Currently, the county receives 52% and the city's portion is 48%. Effective July 1, 2015, the county will receive 55.5% and the city's portion will be decreased to 44.5%. Since the city's sales tax revenue has been decreased, either tax rates and /or fees will need to be increased to keep the same levels of service currently being given to our citizens.

The City's Health Insurance internal service fund has been under budgeted within the last 2 year's due to high health insurance claims. Next budget year several changes will be made to the plan; such as implementing a higher deductible for the employees, and removing spousal coverage if they are eligible for coverage at their work place. The City will continue to rebid all components for the best possible rate for insurance. The results from the higher health insurance claims has caused a cash flow deficit. A change must be made to maintain the City's financial status.

The City continues to search for ways to deliver cost effective services to the citizens of Waycross. Over the past several years, garbage services and the operations of the water and wastewater treatment plant has been outsourced. All division directors have been diligently looking for ways to keep operational cost down within their departments. Although some factors such as gas, diesel, and electricity rates are something the city has no control over, each department has stayed within their allotted budgets.

In closing, the City of Waycross continues to operate to maintain a balanced budget by; cutting any wasteful spending, maintaining tight revenue administration to ensure the City receives all revenue it is entitled to, and streamlining our service delivery to save on operational costs.

11


Contacting the City's Financial Management

The financial report is designed to provide our citizens, taxpayers, customers and investors and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City Manager's office at the City of Waycross, 417 Pendleton Street, Waycross, Georgia 31501.

12

BASIC FINANCIAL STATEMENTS

CITY OF WAYCROSS, GEORGIA STATEMENT OF NET POSITION

JUNE 30, 2016

Prlma!l Government Governmental Business-type

Activities Activities Total Assets

Cash and Equivalents $ 7.222.542 $ 1,934.463 $ 9,157,005 Receivables 512,937 853,836 1,366,773 Prep aids 39,855 39,855 Internal Balances 22,000 (22,000) Due from Other Governments 434,900 434,900 Inventories 58,645 54,660 113,305 Capital Assets

Non-depreciable 6,013,694 393,814 6,407,508 Depreciable (net) 12,9131120 3015371736 43.450,856

Total Assets 27,217,693 33,752,509 60,970,202

Dererred Outflows or Resources Deferred outfows • pension 2,3501937 21350,937

Total deferred outflows of resources 2,3501937 21350,937

Uabilltles Accounts payable and accrued expenses 2,378,236 4,520 2,382,756 Deposits 246,994 246,994 Long-tenn liabilities

Due within one year Loans payable 30,000 845,407 875,407 Capital lease obligations 88,688 38,729 127,417

Due in more than one year Loans payable 582,500 4,724,561 5,307.061 Capital lease obligations 142,496 152,926 295,422 Compensated absences 409,105 13,819 422,924 Other post employment benefits 668,924 668,924 Net pension liability 7,3321565 71332,565

Total liabilities 1116321514 6,026,956 171659,470

Deferred Inflows of Resources Deferred infows • penSion 677 854 677,854

Total deferred inflows of resources 6771854 677,854

Net Position Net Investment in capital assets 18,083,130 25,169,927 43,253,057 Restricted for:

Capital projects 5,891,743 5,891,743 Community development projects 212,038 212,038 Other projects 41,084 41,084

Unrestricted {619691733) 2,555,626 {4.414,107) Total net position $ 17,258,262 $ 27,725,553 $ 44,983,815

The accompanying notes are an integral part of these statements. 13

Fundlom/Prognum Primary government

Govenunental Activities General Govenunent Public Safety Slreets and Sanilation Community Development Interest on Long-term debt

Total governmental activities

Business-type activities: Public Utilities Waste Management City Auditorium

Total business-type activities Total primaiy government

s

s

CITY OF WAYCROSS, GEORGIA STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION


Promm Revenue peraibig Cipbiil Grants

Charges for Grants and Dlld Exoenses Services Contributions Contributions

434,965 s 934,711 s 120,168 s 7,754,031 470,399 1,152,700 3,758,455 3,064 l,420,459

985,030 ISl,208 45,082 91,126 19.102

12,951.583 1.5591382 1651250 2,664,285

4,337,764 4,352,063 365,935 1,883,887 1,923,039

1511638 201950 44100 613731289 612961052 4101035

19,324,872 s 71855,434 s 1651250 s 3,074,320

General revenues: Taxes:

Property taxes, levied for general purposes Sales Taxes Franchise Fee Other Taxes

Unrestricted investment earnings Miscellaneous

Total general revenues Change in net position

Net position • beginning Net position • ending


Net {!xpense} Revenue md OlaJ1£es In Net Position Prlma!J: Government

Govenunental Business-type Activities Activities Total

s 619,914 s s 619,914 (6,130,932) (6,130,932) (2,334,932) (2,334,932)

(697,614) (697,614) (1911022 (191102}

(8,562,666} (81562,666)

380,234 380,234 39,152 39,152

44100 {861588} {861588} 44100 332,798 332,798

s (8,562,666) s 332z798 s {8.229,868}

s 3,140,361 s s 3,140,361 2,780,778 2,780,778 1,200,642 1,200,642 2,040,220 2,040,220

2,365 400 2,765 151614 151614

911791980 400 911801380 617,314 333,198 950,512

16.6401948 271392,355 4410331303 s 1712581262 s 27,725,553 s 44,983,815

Assets Cash and cash equivalents s Receivables (net)

Taxes Accounts

Due from other funds Receivable from other govenunents Inventories Other receivables Prepaid expenditures

Total assets

LlllbWtles and Fund B11Jance (Deftclt) Liabilities:

Accounts payable Due to other funds Salaries payable

Total liabilities

Dererred lnOows of Resources Unavailable revenue

CITY OF WAYCROSS, GEORGIA BALANCE SHEET

GOVERNMENTAL FUNDS JUNE 30, 2016

GENERAL SPLOST 2008-FUND 2013 SPLOST2014

1,277,558 s 2,637,840 s 2,949,101

380,151 3,755

776,000 241,195 193,705 24,551

151223 2z718z433 2,637,840 3,142z806

1,338,222 44,Sl8 13,479 397,802 1561933

l1892z957 441518 13,479

361,921

OTHER GOVERNMENTAL

FUNDS

s 669,623

193,592

112,885

976,100

40,170 401,000

441 170

Total deferred inflows of resources 3611921

Fund balances (Deficit): Nonspendable Reslricfed Committed Assigned Unassigned

Total fund balances (deficit) Totnl liabilities, deferred inftows and fund balances (deficit)

39,774 2,593,322 3,129,327

423,781 463,555 2z5931322 3,1291327

s 2z718,433 s 2z637,840 s 3,142z806 s


422,216 151,951 33,396

p;633} 534,930

976,100

TOTAL GOVERNMENTAL

FUNDS

s 7,534,122

380,151 3,755

969,592 434,900 24,SSI

112,885 151223

9,475,179

1,436,389 798,802 1561933

2,39;124

361,921 3611921

39,774 6,144,865

151,95 I 33,396

351 148 6,721,134

s 91475,179

CITY OF WAYCROSS, GEORGIA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION AS OF JUNE 30, 2016

Total fund balance, governmental funds

Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used·in governmental activities are not current financial resources and therefore are not reported in the fund financial statements, but are reported in the governmental activities in the government-wide statement of net position.

'!be deterred outtlows are not current assets or financial resources, and the deterred intlows are not due and payable in the current period and therefore are not reported in the fund financial statements.

Deferred outflows Deferred inflows

Long-term liabilities are not due and payable in the current period and are not included in the fund financial statements, but are included in the governmental activities of the government· wide statement of net position.

Loans payable Capital lease obligations Compensated absences Net other post employment benefits (OPEB) Net pension liability

Internal service funds are used by management to charge the cost of certain activities to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the government-wide statement of net position.

Net position of internal service funds Less capital assets included above Add compensated absences included above

Def erred revenue in governmental funds is susceptible to full accrual on the entity-wide statements

Net Position of Govenunental Activities in the Statement of Net Position

The accompanying notes arc an integral part of these statements. 16

(1, 185,575) (2,769)

17 931

$ 6,721,134

18,926,815

2,350,937 (677,854)

(612,500) (231,184) (409,105) (668,924)

(7,332,565)

(l,170,413)

361,921

$ 17 ,258,262

CITY OF WAYCROSS, GEORGIA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2016

GENERAL SPLOST 2008· FUND 2013 SPLOST2014

Revenues Taxes s 8,7S0,422 s s Fines and forfeitures 301,312 Licenses and pennits 878,033 Intergovemrncntnl 135,S31 2,233,967 Owges for services 32,930 Interest income S70 3,941 l,1SS Miscellaneous 198.2SI Total revenues 1012971749 3 941 2123s1122

Expenditures Current: General government 432,707 Public Safety 7,484,684 Public Works 1,756,299 Community development 660,733

Debt Service: Principal retirement 152,840 Interest and other charges 19,099

Capital Outlay 3741631 7941296 Total Expenditures 1015061362 374.631 7941296

Excess {Deficiency} Of Revenues Over Expenditures (208.613} (370,690) I.441.426

Other Financing Sources (Uses) Transfers in Transfers out Proceeds ftcm capital leases Total Other Financing Sources (Uses}

Net Change in Fund Balances

Fund Balances (Deficit)· Beginning ofY car Fund Balances (Deficit)· Ending of Year

212,897

212.897

4,284 (370,690) 1,441,426

4S91271 2.964.012 11687.901 $ 4631555 s 2,S93J22 $ 3,129,327

The accompaying notes arc an integral part of these statements. 17

OTHER TOTAL GOVERNMENTAL GOVERNMENTAL

FUNDS FUNDS

s 341,S33 s 9,091,9S5 301,312 878,033

172,356 2,S41,8S4 38,727 71,6S7

170 6,436 11118ss 376809 7301644 13126810S6

349 433,0S6 61,017 7,S45,701

l,7S6,299 343,880 1,004,613

152,840 19,099

8391212 210081139 1~4414S8 12.919.747

(5131814} 348.309

212,897 (212,897) (212,897)

(212,897}

(726,711) 348,309

112611641 61372182s $ S34,930 s 6,721,134

CITY OF WAYCROSS, GEORGIA RECONCilJATION OF GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE TO THE GOVERNEMENT-WIDE STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION


Net change in fund balances - total governmental funds:

Amounts reported for Governmental Activities in the Statement of Activities are different because:

Governmental funds report outlays for capital assets as expenditures because such outlays use current financial resources. In contrast. the Statement of Activities reports only a portion of the outlay as expense. The outlay is allocated over the assets' estimated useful lives as depreciation expense for the period. This is the amount by which capital outlays exceeded depreciation in the current period.

Capital outlays Disposal of assets Depreciation expense

Revenues reported on the statement of activities that do not provide current financial resources are not reported as revenues in governmental funds:

Deferred Revenues

Repayment of principle is an expenditure in the governmental funds, but the repayment reduces long-tenn liabilities on the statement of activities.

Capital lease principle payments Notes payable principle payments

Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds:

Changes in other post employment benefits (OPEB) Changes in long-tenn compensated absences Changes in net pension liability

Internal service funds are used by management to charge the costs of certain acti vi lies, such as fleet maintenance and infonnation technology, to individual funds. The net revenue (expense) of certain internal service funds is reported with governmental activities.

Less change in capital assets included above Add change in compensated absences included above

Change in net position of governmental activities

The acccmpanying notes arc an integral part of lhese statements. 18

1,507,754 361,940

(l ,195,270)

(806,672) 2,316

(l,162)

$

$

348,309

674,424

45,831

122,836 30,000

(112,616) (8,658)

322,706

(805,518)

617,314


PROPRIETARY FUNDS JUNE 30, 2016


LIABILITIES Current Ullbllltles

Accounts payable SaLvics payablo Duo IO other funds Compcnalcd absences Cuslcmcr clcposill Capltsl leaso obllgali011.1 • cwrcnl portion l..oalu payable· cwrcnt pomon

Total Cwrent Uabllitics


PROPRIETARY FUNDS JUNE 30, 2016

ENTERPRISE FUNDS

NON-MAJOR PUBLIC WASTE CITY

unLmES MANAGEMENT AUDITORIUM

$ $ $ 4,520

7SO,OOO 13,819

233,031 6,450 7,513 15,187 23,542

845,407

1,843,625 48,331 7513

Non-Cwrenl Uabilitcs (payable fiom unn:slriclcd well) Capital leaso obliptltms (net of cwrcnt pomon) 59,351 93,575 Loans payable (net of eumnl ponion) 4,724,561

Total Non-OlrmU Uabilitca (payable ~ uruatriclcd assets) 4,783,912 931575

Total Uabilitcl

NETPOSmON Net invcatmcnt in Cl(lital aSSC11 UIU'CSlriclcd

Total Net Position

6,627,537 141,906

23,391,594 179,903 ~280,825 18~602

s 251~419 s 3~SOS s

The accompanying notes are an integral part oftbcsc statements. 20

1513

1,692,005 (1,37fil

116901629

INTERNAL SERVICE

TOTALS FUNDS

$ $ 2,156,031 4,SlO 4,684

750,000 872,842 13,819 17,931

246,994 38,729

845,407

l,8!19.469 310511488

152,926 41724,561

4,877,487

6,n~9S6 3,0511488

2S,263,S02 2,769 ~46~051 (l,18!.344}

s 2111251553 s (11185,575)

CITY OF WAYCROSS, GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS

Revenues Charges fCll' savices Operating conlributians TGlal operating revenues

OperaUng Expenses Pcrsonlll aervicea Canlradual services Utilities Repairs lllld mainlenancc Oilier supplies and expenses Retirement payments lnsuranco claims lllld cxpcnscs DqlRcinlion lllld amortization

Tolal Operating Expenses

Operating (ncome (Loss)

Non-Opel'lltlng Revenues (B:rpensc1) IJ1laest and investment RVelllle MnccllllllCOUS revenue (Rlctest ClCpellSO

TGlal Non-Opernting Revenues (Elcpenscs)

Income (Loss) Before CanlnDutians And Transfers

Capitlll srnnts and c:ontributioos

Total Other Fin11ncing Sources

Chango in net position

Total net position· beginning Total net position - ending

FOR THE YEAR ENDED JUNE JO, 2016

ENTERPRISE FUNDS

NON-MAJOR PUDUC WASTE CITY

UTILl11ES MANAGEMENT AUDITORIUM

$ 4,3S2.063 $ 1,923,039 $ 29,702

4,35~063 1,923,039 29,702

469,469 2.999 2.499,298 l,24Q,Ot9 2.70S

19,401 203,721 IS0,749 1,130 454,839 1,498 2.733

10.433 734 1,025,229 10930 1~688

4,183,087 1,88~128 1~90

168,976 39~11 (13!!,688}

400

(154,6:!Il (759}

(154,2:!Il (759)

14699 39152 (13!!,688}

365,935 ~100

365,935

380,634 39,152 (86,588)

25,291,785 323JS3 1,m,211 $ 2516lai419 $ 3~SOS s 11690.629

The accompanying notes arc an integral part ofd1esc statements. 21

TOTALS

$ 6,.3Gl,804

6J!.!:!.804

472,468 3,742,0S2

19,401 3SS,600 459,070

11,167 l,l!j§.847

61~605

1!,199

400

{ISS,4~

{155103§1

Q§.83Il

41Q.03S

41Q.03S

333,198

27~35S s 27172S1SS3

INTERNAL SERVICE FUNDS

$ 496,037 3,779,414 4,275,451

410.542 21,814

32,812

1,142,494 3.502,llS

2316

51 11~093

(~642}

6 29,964

29970

(~672)

(806,672)

(378,903}

! '1118S1S7S}

CITY OF WAYCROSS, GEORGIA STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2016

BUSINESS-TYPE AC11VITIES ENTERPRISE FUNDS

PUBLIC WASTE CITY 1ITILITIES MAN~GEMENT AUDITORWM

C:ish Flom Frcm Operating Activities Caah received from c:uslomcrs s 4,346,S62 s 1,931,427 s 29,702 Caah paid IO Mlpjllicrs (3,ISl,808) (1,401,179) (23,S28) Caah paid to employees (464,9S~ ~999)

Net Caah Provided By (Used In) Operating Activities 1,194,7S4 6Sl93 317S

Cash Flows Frcm Nnneoplllll FlnHdng Activities MisccllllllCOUS non-opcnlling revenue

Net Cosh Provided By Noncopillll Financing Activities

Cmb Flows Frcm Caplllll And Related Flnundng Activities Principal paid on loans payable (749,96S) 117,117 Al:quilition and collSllUction of capital llSSCls (4S2,924) (192,89S) (44,100) Capital gnnts llOd oonlnliutions 36S,93S 44,100 lntaest paid (IS4,61n QS9)

Net Cash (Used In) Capital And Rclaled Activities (221,631} Q§.S32}

Cush Flows Frcm Investing Acllvllles lntaest on cash deposits 400

Net Cuh Pnnidcd By Investing Ai::livities 400 Net Increase (Dccrcasc) In Cash 203,Sll (11,244) 3,17S Cash Bcgiming of Year l,6Sa,699 83179 ~962 Cash u End of y Cllt s l,8S6.222 s 71,93S s ~137

BEil~MDllr:I UE l!l!mt\ TING f&:OME 11.0SS\ IO f:fEI CMJ.l l!BU!mED B:k'. mliEI! Im S!l!mA TIN!:& 1!.CTIVITIF.§

Operatins lncomo (Loss) s 168,916 s 39,911 s Adjustmalls To Reconcile Opcmting Income (Loss) To Net Caah

Provided By (Used In) Opaaling Ac:tivities: Dq>rcciation one! lllllOrtization

Chango in Asscls and Liabilities: Accounts receivable Duo from other fwtds ln\'alleries Prepaid cxpcnscs Accounl.s payable Al:aued cxpcnscs Custm= deposits

Net Cosh Provided By (Used In) Operating Ai::livities

Cash Per Financial Sllltements, Including Investments Less: Non-Cash Equivalents TotalCash

l,02S,229 10,930

(10,368) 8,389

4,867

4,513 §.OSO I SSO

s 1,194,754 s 6S,293 s

s 1,856,3!11 s 71,935 s 169

s 1,8S6.222 s 71,93S s

The accompanying notes arc an integnil put or these statements. 22

(130,688)

130,688

3175 317S

6,137

§,137

INTERNAL TOTAL smvrcE FUNDS

s 6,307,691 s 4,266.801 (4,S76,SIS) (4,012.SSI)

(467,9S4) (410,110) 1,263~2 (ISS,11(>())

29964 29964

(632.l48) (689,919) 410,0JS (ISS,4~

(1,068,168}

400 6 400 6

l!IS,4S4 (12S,890) 1,73!,!40 l,12!!.111

s 1,934,294 s 1,064,221

s 78,199 s (836,642)

1,166,847 2.316

(l,979) (2,375) (4,211)

4,867 (2,065) 6,719

679,96S 4,Sl3 433

10775 s 1,263,222 s (ISS,860)

s 1,934,463 s 1,064,221 169

s 1!934,294 s 1,064,lll

CITY OF WAYCROSS, GEORGIA STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

FIDUCIARY FUNDS JUNE 30, 2016

TOTAL AGENCY

ASSETS Cash and cash equivalents $

Total assets

LIABILITIES Refundable court bonds Seized funds held

Total liabilities $


FUNDS

86,139

86,139

41,115 45,024

86,139

CITY OF WAYCROSS, GEORGIA NOTES TO THE FINANCIAL STATEMENTS

NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The City of Waycross, Georgia operates under the leadership of the Mayor, City Manager and City Commission consisting of four members and provides or assists in providing the following services: public safety (police department), highways and streets, public improvements, recreation, and general administrative and other services. In addition, the City operates enterprise funds (water and sewer and waste management) for incorporated and immediate surrounding areas.

A. Basis of Presentation

The City's basic financial statements consist of government-wide financial statements, including a statement of net position and a statement of activities, and fund financial statements which provide a more detailed level of financial information.

Government-Wide Financial Statements

The statement of net position and the statement of activities display information about the City as a whole. These statements include the financial activities of the primary government, except for fiduciary funds. The statements distinguish between those activities of the City that are governmental in nature and those that are considered business-type activities.

The statement of net position presents the financial condition of the governmental and business-type activities of the City at year end. The statement of activities presents a comparison between direct expenses and program revenues for each program or function of the City's governmental activities and business-type activities. Direct expenses are those that are specifically associated with a service, program, or department and, therefore, clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program, grants and contributions that are restricted to meeting the operational or capital requirements of a particular program, and interest earned on grants that is required to be used to support a particular program. Revenues that are not classified as program revenues are presented as general revenues of the City, with certain limited exceptions. The comparison of direct expenses with program revenues identifies the extent to which each governmental program or business activity is self-financing or draws from the general revenues of the City.


During the year, the City segregates transactions related to certain City functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the City at this more detailed level. The focus of governmental and proprietary fund financial statements is on major funds. Each major fund is presented in a separate column. Nonmajor funds are aggregated and presented in a single column.

Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated, however, those transactions between governmental and businesstype activities have not been eliminated. Governmental activities which normally are supported by wees and intergovernmental revenues are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

24


NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

B. Reporting Entity

Standards published by the Governmental Accounting Standards Board (GASB) define the financial reporting entity as (a) the primary government, (b)organi7.ations for which the primary government is financially responsible, and (c) other organi7.ations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. There are no organi7.ations identified as component units of the City, as defined by GASB Statement No. 14, "The Financial Reporting Entity".

C. Fund Accounting

The City uses funds to maintain its financial records during the year. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts. There are two categories of funds: governmental and proprietary.

Governmental Funds

Governmental funds are those through which most governmental functions of the City are financed. Governmental fund reporting focuses on the sources, uses, and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purpose for which they may or must be used. Current liabilities are assigned to the fund from which they will be paid. The difference between governmental fund assets and liabilities is reported as fund balance. The following are the City's major g'?vernme~tal funds:

General Fund - The General Fund is used to account for all revenues and expenditures applicable to the general operations of City government which are not properly accounted for in another fund. All general operating revenues which are not restricted or designated as to use by outside sources are recorded in the general fund.

SPLOST Fund 2008-2013 - The fund is used to account for the special one cent sales tax revenues (approved by Ware County voters) that are specifically restricted to various capital improvements within the city limits.

SPLOST 2014 Fund - The fund is used to account for the special one cent sales tax revenues (approved by Ware County voters) that are specifically restricted to various capital improvements within the city limits.

The other governmental funds of the City account for grants and other resources whose use is restricted for a particular purpose; the accumulation of resources for, and the payment of debt; and the acquisition or construction of major capital projects.

25


NOTE I -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Proprietary Funds

Prop~ietary fund reporting focuses on the determination of operating income, changes in net position, financial pos1t1on, and cash flows. The City's enterprise funds may be used to account for any activity for which a fee is charged to external users for goods or services. The following are the City's major enterprise funds:

Public Utilities Fund - The fund is used to account for the provision of water and sewer services to the residents of the City. Activities of the fund include administration, operations and maintenance of the water and sewer system and billing and collection activities. The fund also accounts for the accumulation of resources for, and the payment of, long-term debt principal and interest for water and sewer debt. All costs are financed through charges to utility customers with rates reviewed regularly and adjusted if necessary to ensure integrity of the funds.

Waste Management Fund - The fund is used to account for operations of solid waste collection and disposal services. All costs are financed through charges to sanitation customers.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with proprietary fund principal ongoing operations. The principal operating revenues of the enterprise funds and of the government's internal service funds are charges to customers for sales and service. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Internal Service Funds

The City reports Internal Service Funds which are used to account for the fleet management services, payroll services, retirement, self-funded property and casualty insurance, self-funded workers compensation insurance, and self-funded health insurance provided to departments of the City.

Fiduciary Funds

Fiduciary Funds are accounted for on the accrual basis. Agency funds account for assets held by the City in a purely custodial capacity. The reporting entity includes two agency funds. Since agency funds are custodial in nature (i.e. assets equal liabilities), they do not involve the measurement of _results of operations. The Police Condemnation fund is used to account for monies seized that are waiting to be disposed of by the court system. The Municipal Court fund accounts for court bonds held awaiting court dates.

D. Measurement Focus

Government-Wide Financial Statements

The government-wide financial statements are prepared using a flow of economic resources measurement focus. All assets and all liabilities associated with the operation of the City are included on the statement of net position.


All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. The statement of revenues, expenditures, and changes in fund balance reflects the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements

26



are prepared. Governmental fund financial statements, therefore, include a reconciliation with brief explanations to better identify the relationship between the government-wide statements and the fund financial statements for governmental funds.

Like the government-wide financial statements, the enterprise funds are accounted for using a flow of economic resources measurement focus. All assets and all liabilities associated with the operation of these funds are included on the statement of net position. The statement of changes in revenues, expenses, and changes in fund net position presents increases (i.e., revenues) and decreases (i.e., expenses) in total net position. The statement of cash flows reflects how the City finances and meets the cash flow needs of its enterprise activities.

E. Basis of Accounting

Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide and enterprise fund financial statements are prepared using the accrual basis of accounting. Governmental funds use the modified accrual basis of accounting; enterprise funds use the accrual basis of accounting. Differences in the accrual and modified accrual basis of accounting arise in the recognition of revenue, the recording of deferred revenue, and in the presentation of expenses verses expenditures.

F. Revenues - Exchange and Non-exchange Transactions

Revenues resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On the modified accrual basis, revenue is recognized in the year in which the resources are measurable and become available. Available means the resources will be collected within the current year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current year. For the City, available means expected to be received within sixty days after year end.

Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, sales taxes, grants, entitlements, and donations. On the accrual basis, revenue from property taxes are recognized in the year for which the taxes are levied. Revenues from sales taxes are recognized in the period in which the sales are made. Revenues from grants, entitlements, and donations are recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used of the year when use is first permitted; matching requirements in which the City must provide local resources to be used for a specified purpose; and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On the modified accrual basis, revenue from nonexchange transactions must also be available before it can be recognized.

Under the modified accrual basis, the following revenue sources are considered both measurable and available at year end: sales taxes, charges for services, fines and forfeitures, state-levied locally shared taxes, grants, interest, and rent.

G. Def erred Outflows/Inflows of Resources

The City adopted new accounting guidance, GASB Statement no. 63, Financial Reportinf{ qf D~(erred Ou~flows or Resources, D~ferred !~flows of Resources, and Net Position. This standard modified terminology and presentation of certain accounts.

Deferred outflows of resources represent a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

27



Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has unavailable revenue, which arises only under the modified accrual basis of accounting, which qualifies for reporting in this category on the governmental funds balance sheet. Deferred revenues arise when assets are recognized before the revenue recognition criteria have been satisfied.

The following amounts are deferred and recognized as an inflow of resources in the period that the amounts become available:

Unavailable Revenue Property taxes Unavailable revenue

H. Expenses/ Expenditures

On the accrual basis, expenses are recognized at the time they are incurred.

General Fund

$ 361,921

$ 361,921

The measurement focus of governmental fund accounting is on decreases in net financial resources (expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in which the related fund liability is incurred, if measurable. Allocations of cost, such as depreciation and amortization, are not recognized in governmental funds.

I. FASB Statements and Interpretations

For Proprietary activities, all FASB Statements and Interpretations issued after November 30, 1989 have been applied except for those that conflict with or contradict GASB pronouncements.

J. Budgets and Budgetary Accounting

An annual budget is adopted (as required by law) by the City for the general and special revenue funds. The budgets are adopted on a basis substantially consistent with generally accepted accounting principles.

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. Prior to June 30, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted at City Hall to obtain taxpayer comments.

3. The City Council approves, by ordinance, total budget appropriation and departmental budgets. The City Manager is authorized to transfer budget amounts between line items within any department in conjunction with the department head; however, any revisions that alter the total appropriations of any department or fund must be approved by the City Council. Therefore, the level of budgetary

28



responsibility is by department-level appropriations; however, for reporting purposes, this level has been expanded to a functional basis (General Government, Public Safety, etc.).

4. Unused appropriations for all of the above annually budgeted funds lapse at the end of the fiscal year.

5. The budget amounts shown in the financial statements are the final authorized amounts as revised during the year.

6. Formal budgetary integration is employed as management control device during the year for the General Fund. The budget for the general fund is prepared on the cash and expenses/encumbrances basis. Revenues are budgeted in the year receipt is expected; and expenditures, which include encumbrances, are budgeted in the year that applicable purchase orders are expected to be issued. The budget for the Enterprise Fund is adopted under a basis consistent with GAAP, except for that depreciation, certain capital expenses, and certain non-operating income and expense items are not considered. Annual appropriated budgets are adopted for the special revenue funds. Annual appropriated budgets are also adopted for the following internal service funds; health insurance, liability insurance, workers compensation insurance, retirement fund, data processing fund, city garage fund and the public building fund.

Budgeted amounts are as originally adopted or as amended by the City Council. Individual amendments were not material in relation to the original appropriations, which were adopted.

OCGA 36-81-3(b) requires an annual balanced budget for the general fund, each special revenue fund and requires a project-length balanced budget for each capital project fund. For the year ended June 30, 2016, an annual budget was adopted for all funds.

t

The legal level of budgetary control for the City is at the department level.

K. Encumbrances

Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting, under which orders, contracts and other commitments for the expenditures of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund and Special Revenue Funds. Encumbrances outstanding at fiscal year-end lapse and must be re-budgeted.

L. Cash and Cash Equivalents

For the proprietary fund types a statement of cash flows is presented, as is required by GASB Statement 9, instead of a statement of changes in financial position. For this statement, cash equivalents are defined as short-term, highly liquid investments with a maturity of three months or less when purchased, that are readily convertible to known amounts of cash, and so near their maturity that they present insignificant rates of changes in value because of changes in interest rates.

29



M. Investments

The City is authorized to invest its funds in (1) obligations which constitute direct obligations of. or are unconditionally guaranteed by, the United States of America; (2) certificates of deposit issued by state and national banks located within the state of Georgia when secured by acceptable collateral; (3) obligations of the Federal Land Bank, the Federal Home Loan Bank, Federal Intermediate Credit Bank and Federal Bank for Cooperatives; and (4) bonds or other obligations issued by any public housing agency or municipality which are served by a pledge of annual contributors under contract with the United States Government, or project notes secured by a payment agreement with the United States Government.

All investments are stated at market value.

N. Capital Assets

General capital assets are associated with and generally arise from governmental activities. They generally result from expenditures in governmental funds. General capital assets are reported in the governmental activities column of the government-wide statement of net position but are not reported in the fund financial statements. Capital assets used by the enterprise funds are reported in both the business-type activities column of the government-wide statement of net position and in the respective funds.

The cost of infrastructure assets, including roads, bridges, curbs and gutters, streets, sidewalks, drainage systems and lighting systems acquired during the current fiscal year is recorded in the government-wide financial statements. The City is not required to and will not record acquisitions prior to June 30, 2003.

All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and reductions during the year. Donated capital assets are recorded at their fair market value on the date donated. The City maintains a capitalization threshold of five thousand dollars. Improvements are capitalized; the cost of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset's life are not capitalized. Interest incurred during the construction of enterprise fund capital assets is also capitalized.

All capital assets are depreciated, except for land and improvements and construction in progress. Improvements are depreciated over the remaining useful lives of the related capital assets. Depreciation is computed using the straight-line method over the following useful lives:

Description Building and Building Improvements Machinery and Equipment Vehicles Infrastructure

0. Inventories

Estimated Lives 20-40 years 5-20 years 5-7 years

15-40 years

Inventories in the governmental and proprietary funds consist of supplies and are valued at weighted average cost. These inventories are recorded as expenditures as they are consumed.

P. Interfund Receivables and Payables

Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances".

30



Q. Transfers Between Funds

Legally authorized transfers are treated as interfund transfers and are included in the results of operations of both Governmental and Proprietary Funds.

R. Allowance For Doubtful Accounts

The City provides an allowance for the Public Utilities Fund, Waste Management Fund and the Property tax accounts receivable that may be uncollectible. At June 30, 2016, the allowances are $135,136, $62,267 and $22,914, respectively. No other allowances for uncollectible accounts receivable are necessary. All other accounts receivable are considered collectible as reported at June 30, 2016.

S. Bond Discounts, Premiums, and Issuance Costs

Bond discounts and premiums for proprietary fund types are deferred and amortized over the term of the bonds using the bonds-outstanding method, which approximates the effective interest method. At the governmental fund reporting level, bond discounts and premiums are reported as other financing sources, separately from the face amount of the bonds issued. Bond issuance costs are reported as expenditures in the year incurred.

T. Compensated Absences

Vacation benefits are accrued as a liability as the benefits are earned if the employees' rights to receive compensation are attributable to service already rendered and it is probable the City will compensate the employees for the benefits through paid time off or some other means. The City records a liability for accumulated unused vacation time when earned for all employees.

The entire compensated absences liability is reported on the government-wide financial statements.

On governmental fund financial statements, compensated absences are recognized as a liability and expenditure to the extent payments come due each period upon the occurrence of employee resignations and retirements. The noncurrent portion of the liability is not reported. For enterprise funds, the entire amount of compensated absences is reported as a fund liability.

U. Retirement Plans

In government-wide financial statements, retirement plans {pensions) are required to be recognized and disclosed using the accrual basis of accounting (see Note 1 S and the required supplementary information (RSI} section immediately following the Notes to the Financial Statements}, regardless of the amount recognized as pension expenditures on the governmental fund statements, which use the modified accrual basis of accounting.

In general, the City recognizes a net pension liability, which represents the City's proportionate share of the excess of the total pension liability over the fiduciary net position of the pension reflected in the actuarial report provided by the Georgia Municipal Employees Benefit System (GMEBS). The net pension liability is measured as of the September 301h immediately prior to the City's fiscal year-end. Changes in the net pension liability are recorded, in the period incurred, as pension expense or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change. The changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources {that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience) are amortized as a component of pension expense over a five year period beginning with the period in which they are incurred.

31


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

For purposes of measuring the net pension liability and deferred outflows/inflows or resources relating to pensions and pension expense, information about the fiduciary net position of the City's pension plan with GMEBS and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by GMEBS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when paid. Investments are reported at fair value.

Projected earnings on pension investments are recognized as a component of pension expense. Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred. Each subsequent year will incorporate an additional closed basis five-year period of recognition.

V. Accrued and Long - Tenn Liabilities

All payables, accrued liabilities, and long-term obligations are reported on the government-wide financial statements. All payables, accrued liabilities, and long-term obligations payable form the enterprise funds are reported on the enterprise fund financial statements.

In general, governmental fund payables and accrued liabilities are recognized as fund liabilities when incurred. However, compensated absences and contractually required pension contributions that are paid from governmental funds are reported as liabilities on the fund financial statements only to the extent that they are due for payment during the current year. Loans and capital leases are recognized as a liability on the fund financial statements when due.

W. Capital Lease Obligations

The capitalized lease obligations are stated at the original fair market value of leased assets capitalized, less payments since the inception of the lease, discounted at the implicit rate of interest in the lease.

X. Fund Equity

Fund equity at the governmental fund financial reporting level is classified as "fund balance". Fund equity for all other reporting is classified as "net position".

Fund Balance - Generally, fund balance represents the difference between the current assets and current liabilities. In the fund financial statements, governmental funds report fund classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Fund balances are classified as follows:

Nonspendable - Fund balances are reported as nonspendable when amounts cannot be spent because they are either (a) not in spendable form (i.e. items that are not expected to be converted to cash) or (b) legally or contractually required to be maintained intact.

Restricted - Fund balances are reported as restricted when there are limitations imposed on their use wither through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments.

Committed- Fund balances are reported as committed when they can be used only for specific purposes pursuant to constraints imposed by formal action of the City Council through adoption of a resolution. The City Council also may modify or rescind the commitment by the same formal action.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Assigned- Fund balances are reported as assigned when amounts are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed. Through resolution, the City Council has authorized the City Manager to assign fund balances.

Unassigned - Fund balances are reported as unassigned as the residual amount when the balances do not meet any of the above criterion. The City reports positive unassigned fund balance only in the general fund. Negative unassigned fund balances may be reported in all funds.

Flow Assumptions - When both restricted and unrestricted amounts of fund balance are available for use for expenditures incurred, it is the City's policy to use restricted amounts first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balance, it is the City's policy to use fund balance to use fund balance in the following order:

• Committed • Assigned • Unassigned

Net Position- Net position represents the difference between assets and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of any borrowing used for the acquisition, construction, or improvement of those assets. Net position is reported as restricted when as described in the fund balance section above. All other net position is reported as unrestricted.

The City applies restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted net position is available.

Y. Prepaid Expenditures

Payments made to various vendors for items or services for a future period are recorded as prepaid expenditures.

Z. Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumption that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

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NOTE 2- EXPENDITURES IN EXCESS OF APPROPRIATIONS

The following funds' expenditures/expenses exceeded appropriations:

Fund Level Forfeited Property Jail Community Development Fire Department Hotel Motel Fund Wayfest Fund Lt Jeff Little Scholarship Fund ATM Machine Fund SPLOSTFund LMIG Fund

The following funds had deficits at June 30, 2016:

Capital Reserve Fund Health Insurance Fund Cemetery Fund

Expenditures/ Expenses Actual

$ 23,749 669

2,060 7,210

334,558 14,417 4,000

349 505,306 333,906

NOTE 3- CASH DEPOSITS AND INVESTMENTS

Appropriations

$

299,353

Deficit $ 35,367

2,871,848 37,266

Amount Exceeding

Appropriations

$ 23,749 669

2,060 7,210

35,205 14,417 4,000

349 505,306 333,906

As of June 30, 2016, the carrying amount of the City's bank deposits was $9, 152, 175 and the respective bank balances totaled $10,169,925. Of the total bank balance, $386,758 was insured through the Federal Depository Insurance Corporation (FDIC). The remaining $9,783,167 was collateralized with pooled securities held by the financial institutions' trust departments. These securities are held in the name of the financial institution and not that of the city.

34


NOTE 3 - CASH DEPOSITS AND INVESTMENTS, CONTINUED

As of June 30, 2016, the City's carrying amount of deposits, related bank balances, and other cash, were as follows:

Carrying Bank Amount Balance

Demand deposits $ 9,152,175 $ 10,169,925 Petty Cash 4,830

Totals $ 9.157.005 $ 10.169.925

Custodial credit risk is the risk that, in the event of a hank failure, the government's deposits may not be returned to it. The City has a policy to reduce its exposure to this risk by requiring deposits to be collateralized in accordance with State law. As of June 30, 2016, $9,783,167 of the City's bank balance was exposed to custodial credit risk because it was uninsured and collateralized with securities held by the pledging financial institution's trust department or agent, but not in the City's name.

NOTE4-RECEIVABLESANDPAYABLES

Amounts were recorded in the basic financial statements as receivables (amounts due to the City) and payables (amounts due others from the City).

Receivables at June 30, 2016 were as follows:

Governmental Activities: General SPLOST2014 Non-major Internal service funds

Taxes

$ 380,151

Total Governmental Activities 380,151 Business-Type Activities:

Public Utilities $ Waste Management

Total Business-Type Activities $ ----

Accounts Receivable

$ 3,755

16,146 19,901

$ 624,805 229,031

$ 853,836

35

Other Govts Other Total

$ 241,195 $ $ 625,101 193,705 193,705

112,885 112,885 16,146

434,900 112,885 947,837

$ $ $ 624,805 229,031

$ $ $ 853,836


NOTE 4- RECEIVABLES AND PAY ABLES, CONTINUED

Payables at June 30, 2016 were as follows:

Vendors

$ 731 44,518 13,479 1,858

320,050 380,636

$

NOTES-PROPERTY TAXES

$

Salaries/ Benefits

4,684 161,617

- $ 4,520

4,520 $

Other

38,312 1,835,981 3,211,784

233,031 6,450 7,513

246,994

Total

$ 1,495,155 44,518 13,479 40,170

2,160,715 3,754,037

233,031 10,970 7,513

$ 251,514

Property taxes attach an enforceable lien on property as of January 1. Truces are levied on October 1 and are due and payable on or before December 1. The City's taxes are billed and collected by the Ware County True Commissioner. City property tax revenues are recognized when levied. An allowance is established for delinquent taxes to the extent that the taxes are not collectible.

NOTE 6 - HOTEL/MOTEL LODGING TAX

The City is required to disburse funds received from the collection of hotel/motel taxes pursuant to O.C.G.A 48-13-5l(a)(3.7). The tax rate is 5% and is levied on a monthly basis. The City received $341,533 from the collection of the hotel/motel tax during the fiscal year ended June 30, 2016. The City disbursed $121,661 for the promotion of tourism and $194,312 to Channel 42. The balance oflodging tax funds was transferred to the General Fund.

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NOTE 7 - CAPITAL ASSETS

A summary of changes in capital assets for the year ended June 30, 2016 is as follows:

Balance Balance June 30z 2015 Additions Deletions June 30, 2016

Primary Government Governmental Activities: Nondepreciable Capital Assets:

Land $ 5,045,380 $ $ $ 5,045,380 Construction in Progress 574,684 1,214,044 820,414 968,314

Depreciable Capital Assets: Buildings 8,792,244 32,537 8,824,781 Machinery and Equipment 3,284,961 192,121 31,468 3,445,614 Vehicles 5,064,490 430,992 330,472 5,165,010 Infrastructure 34,552,947 820,414 35,373,361

Total Capital Assets 57,314,706 2,690,108 1,182,354 58,822,460 Less Accumulated Depreciation For:

Buildings ( 4, 116,498) (192,073) (4,308,571) Machinery and Equipment (2,693,497) (143,599) (31,468) (2,805,628) Vehicles ( 4,411,649) (258,644) (330,472) ( 4,339,821) Infrastructure {2718401672) (600,954) {28,441,626)

Governmental Activities Capital Assets, Net 18,2521390 1,494,838 820,414 18,926,814 Business-Ty12e Activities: Nondepreciable Capital Assets:

Land and Improvements $ 235,859 $ $ $ 235,859 Construction in Progress 275,051 365,935 483,031 157,955

Depreciable Capital Assets: Buildings 12,194,322 12,194,322 Machinery and Equipment 4,571,699 185,836 4,757,535 Vehicles 934,215 122,914 193,255 863,874 Infrastructure 49!713,956 498,266 50,212,222

Total Capital Assets 67,925,102 1,172,951 676,286 68,421,767 Less Accumulated Depreciation For:

Buildings (6,925,780) (313,849) (7 ,239,629) Machinery and Equipment ( 4,288,416) (46,602) ( 4,335,018) Vehicles (933,916) (6,977) (193,255) (747,638) Infrastructure {24,3681513) (799,419) (25,167,932)

Business-Type Activities Capital Assets, Net 31,408,477 6,104 483,031 30,931,550 $ 49,6601867 $ 1,500,942 $ 1,303,445 $ 491858,364

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NOTE 7 - CAPITAL ASSETS, CONTINUED

Depreciation expense was charged as direct expense to programs of the primary government as follows:

Governmental Activities: General Government Public Safety Public Works Community Development

Total Depreciation Expense-Governmental Activities

Business-Type Activities: Public Utilities Waste Management City Auditorium

Total Depreciation Expense-Business-Type Activities

38

$ 33,152 344,871 805,464

11,783

$ 121952270

$ 1,025,229 10,930

130,688

$ 12166,847


NOTE 8- LONG-TERM OBLIGATIONS

Transactions for the year ended June 30, 2016 are summarized as follows:

Change in Outstanding Debt:

Balance Issues or Payments or June 30, 2015 Additions Exeenditures

Governmental Ty12e Activities: Lease Obligations Payable $ 354,023 $ $ 122,840 Notes Payable 642,500 30,000 Compensated Absences 400,447 8,658 Net pension liability 6,016,038 1,316,527 Other post employment benefits 556,308 388,488 275,872

Total Governmental Activities 7,9692316 1,713,673 4282712 Business-Ty~e Activities: Lease Obligations Payable 203,614 11,958 GEF A-98-L68WJ 757,123 125,333 GEFA Loan-OO-L36EJ 3,896,478 542,191 SRF Loan-CWSRF-00-0020 1,333,190 98,612 SRF Loan-CWSRF-00-01 379,596 53,709 GEF A Loan-CW09071 PF60 28,083 4,657 Compensated Absences 10,625 32194

Total Business-Type Activities 6,4052095 206,808 836,460 Total All Funds $14,374,411 $ l,920,481 $ l,265,172

Amount Due Balance Within

June 30, 2016 One Year

$ 231,183 $ 88,688 612,500 30,000 409,105

7,332,565 668,924

9,2542277 118,688

191,656 38,729 631,790 130,551

3,354,287 553,116 1,234,578 101,604

325,887 55,338 23,426 4,799 13,819

527752443 884,137 $15,029,720 $ 1,002,825

Liabilities for compensated absences are liquidated using resources from the fund in which the employee terminating service previously charged their salary and benefits to, which is the general fund, cemetery fund and solid waste fund.

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NOTE 8-LONG~TERM OBLIGATIONS, CONTINUED

Notes/Loans Payable:

The following is a schedule of annual requirements for GEFA contracts CW09071PF60, 98-L68WJ, CW13088301, OO-L36WJ, #00-20 and SRF00-001.

Governmental Activities Business-Tl'.~e Activities Year

Ending June 30: Princi12al Interest Princi12al Interest

2017 $ 30,000 $ $ 845,407 $ 132,545 2018 30,000 866,896 111,056 2019 30,000 888,984 88,968 2020 30,000 911,691 66,262 2021 30,000 855,334 43,331

2022-2026 150,000 1,133,671 65,932 2027-2031 150,000 67,985 767 2032-2036 150,000

2037 12 500 Total $ 612.500 $ $ 5.569.968 $ 508,861

Governmental Activities:

In March 2010, the City entered into an agreement with BC Waycross Associates, LLP to finance construction of storm water infrastructure and a regional storm water retention pond on the owner's property to accept off-site storm water runoff and render owner's property suitable for development. The total amount financed of $800,000 is due in 320 monthly payments of $2,500 beginning March 15, 2010 at 0 percent interest. At June 30, 2016, the outstanding balance on this loan was $612,500.

Business-Type Activities:

In October 1998, the City entered into a loan agreement (98-L68WJ) with the Georgia Environmental Facilities Authority for certain water and sewer projects for a total amount of $2,000,000. Repayment is over eighty (80) quarterly payments beginning September 1, 2001 at 4.1 percent. At June 30, 2016, the outstanding balance on this loan was $631, 790 and quarterly payments are $38,616.

In August 2000, the City entered into a loan program (CWSRF 00-001) with the Georgia Department of Natural Resources and the Georgia Environmental Facilities Authority for certain sewer improvements for a total amount of $935,467. Repayment is over 78 quarterly payments at 3 percent beginning September 1, 2002. At June 30, 2016, the outstanding balance of this loan was $325,887 and quarterly payments are $16, 124. This loan is to be repaid from revenues of the Water and Sewer System; however, the obligation to repay this loan is a general obligation of the City to which it has dedicated its general power of taxation.

40


NOTE 8- LONG-TERM OBLIGATIONS, CONTINUED

In September 2000, the City entered into a loan agreement (2000-L36WJ) with the Georgia Environmental Facilities Authority for sewer improvements for a total amount of $9,815,000. Repayment is over 80 quarterly payments beginning October I, 2002 at 2 percent. At June 30, 2016, the outstanding balance was $3,354,287 and quarterly payments of $154,018. This loan is to be repaid from revenues of the Water and Sewer System; however, the obligation to repay this loan is a general obligation of the City.

In June 2003, the City entered into a loan agreement (CWSRF-00-020) with the Georgia Environmental Facilities Authority for certain water and sewer projects. At June 30, 2016, the outstanding balance was $1,234,578. Repayment is over 80 quarterly payments of $34,376 at 3 percent. This loan is to be repaid from revenues of the Water and Sewer System; however, the obligation to repay is a general obligation of the City.

In November 2009, the City entered into a loan agreement (CW09071PF60) with the Georgia Environmental Facilities Authority for the construction of a litter trap. The total amount received was $120,78~ as part of the American Recovery and Reinvestment Act (ARRA). The ARRA funds will help finance water system improvements through a low-interest loan in the amount of $47,393 and subsidy of $80,400. At June 30, 2016, the outstanding loan balance was $23,426. Repayment is over 120 monthly payments of$451at3 percent.

Capital Leases The City has entered into various lease agreements as lessee to finance various machinery and equipment. These leases qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. The following is a summary of equipment leased under capital lease agreements by the City as of June 30, 2016:

Government-Type Business-Type Activities Activities

Backhoe Loader $ $ 80,700 Knuckleboom Loader 122,914 Ford F-150 15,259 Animal Control Truck 21,475 2012 Street Sweeper 152,105 International 7500 Dump Truck 82,878 2014 Side Ann Tractor 117,337 2015 Front End Loader 144,600

533,654 203,614 Less Accumulated Depreciation pOl,939) ~14,868) Total ~ 2311715 ~ 1881746

41


NOTE 8-LONG-TERM OBLIGATIONS, CONTINUED

The following is a schedule of the future minimum lease payments required under these capital leases and the present value of the net minimum lease payments at June 30, 2016:

Year Ending June 30: 2017 2018 2019 2020 2021 Total Minimum Lease Payments Less: Amount Representing Interest Present Value of Future Minimum Lease Payments

NOTE 9- INTERFUND TRANSFERS

Governmental-Type Activities

$ 112,028 56,242 56,242 32,895 2 565

259,972 (28,788)

$ 231,184

Business-Type Activities

$ 43,868 43,868 43,868 43,868 29944

205,416 (13,761)

$ 191,655

During the course of normal operations, the City has numerous transactions between funds including expenditures and transfers of resources to provide services. Transfers of resources from a fund receiving revenue to the fund through which the resources are to be expended are recorded as transfers and are reported as other financial sources (uses) in the Governmental Funds and transfers section in the Proprietary Funds.

Transfers between funds during the year ended June 30, 2016 were as follows:

General Fund Hotel/Motel Tax Fund

42

Transfers In

$ 212,897

$ 212,897

Transfers Out

$ 212,897

$ 212.897


NOTE 10- INTERFUND RECEIVABLE AND PAY ABLE BALANCES

During the course of its operations, the City has numerous transactions between funds to finance operations, provide services, construct assets, and service debt. To the extent that certain transactions between funds had not been paid or received as of June 30, 2016, balances of interfund amounts receivable or payable have been recorded.

Individual fund interfund receivable and payable balances at June 30, 2016 are as follows:

Major Govermental Funds General Fund:

Public Utilities Other Governmental Funds Internal Service Funds

Non-major Governmental Funds: A TM Machine Fund Capital Reserve Fund

Total Govermental Funds

Major Business-tvpe Funds Public Utilities:

General Fund Internal Service Funds Capital Reserve Fund

Internal Service Funds: General Fund Public Utilities Capital Reserve Fund Other Internal Service Funds

Totals

43

Interfund Interfund Receivables Payables

$

750,000 26,000

776,000

193,592 193,592

969,592

100,000 253,000 375,000 728,000

297,802

426,250 724,052

224212644

,.

$

100,000

297,802 397,802

26,000 375,000 401,000

798,802

750,000

750,000

253,000 193,592 426!250 872,842

224212644


NOTE 11- FUND EQUITY

Fund balances at June 30, 2016 are classified as follows:

Nonspendable - The following fund balances are nonspendable because they are allocated to:

General Fund: Inventories

Prepaid expenditures

Total Nonspendable

Restricted - The following fund balances are restricted for:

Special Revenue Funds: Forfeited Property Fund - used to account for funds received from property forfeitures.

Jail Fund - used to account for vending revenue of the jail.

FEMA Grants Fund - used to account for expenditures of FEMA grants.

EIP Revolving Loan Fund - used to account for revolving loans issued to local businesses.

Misc Grant Fund - used to account for expenditures of miscellaneous small grants.

Hotel/Mote/ Tax Fund - used to account for hotel/motel tax revenues.

Waycross Fire Dept Fund - used to account for contributions and miscellaneous grants received for the purpose of fire department expenditures.

Total Restricted for Special Revenue

44

$ 24,552

15.223

$ 39,775

$ 22,658

126

566

157,185

13,377

54,853

4,357

$ 253,122


NOTE 11- FUND EQUITY, CONTINUED

Capital Projects Funds: SP LOST 2008-2013 Fund - used to account for capital projects financed with special purpose local option sales tax.

SP LOST 2014 Fund - used to account for capital projects financed with special purpose local option sales tax.

LMJG Fund - used to account for capital projects financed with Georgia DOT local maintenance improvement program.

Total Restricted for Capital Projects

Total Restricted Fund Balance

Committed - The following fund balances are committed to:

Special Revenue Funds: Community Development Fund - used to account for miscellaneous revenues that are committed to community development expenditures.

Cemetery Trust Fund - used to account for funds that accumulated for future cemetery improvements and expansion.

Total Committed Fund Balance

45

$ 2,593,322

3,129,327

169,094

$ 5.891.743

$ 6.144.865

$ 73,698

78,253

$ 151.951


NOTE 11 - FUND EQUITY, CONTINUED

Assigned - The following fund balances are assigned to:

Special Revenue Funds: WPD Info Technology Fund - used to account for fines and forfeitures that are restricted for the use of police department information technology expenditures.

Misc Fund - used to account for donations for the purpose of upkeep and improvements to Henry Walker Park

Way/est Fund - used to account for donations for the purpose of annual Wayfest festival

Lt Jeff Little Scholarship Fund - used to account for donations for the purpose of awarding scholarships

ATM Machine Fund - used to account for activity involving ATM machine used at community events

Total Assigned Fund Balance

$ 17,046

4,995

588

9,072

1.695

$ 33.396

Unassigned - The City's policy is to maintain an adequate General Fund unassigned fund balance to provide liquidity in the event of economic downturn or natural disaster.

The following balances are unassigned:

General Fund

Capital Reserve Fund - negative committed fund balance reported as unassigned.

Cemetery Fund - negative committed fund balance reported as unassigned.

Total Unassigned Fund Balance

46

$ 423,780

(35,367)

(37.266)

$ 351.147


NOTE 12- EMPLOYEE RETIREMENT PLAN

Plan Description

The City's defined benefit pension plan, the City of Waycross Retirement Plan (the Plan), provides retirement and disability benefits and death benefits to plan members and beneficiaries. The Plan is affiliated with the Georgia Municipal Employees Benefit System (GMEBS), an agent multiple-employer public employee retirement system that acts as a common investment and administrative agent for cities in the State of Georgia. The City is assigned the authority to establish and amend benefit provisions of the Plan. GMEBS issues a publicly available financial report that includes financial statements and required supplementary information. The report can be obtained by writing to Georgia Municipal Association, Risk Management and Employee Benefit Services, 20 l Pryor Street, SW, Atlanta, Georgia 30303, or by calling (404) 688-0472.

Employees Covered Under the Plan

Effective January 1, 2015, the Plan was amended to provide for immediate participation for employees. At June 30, 2016, the following employees were covered by the benefit terms:

Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits Active employees

Total covered employees

Funding Policy

157 65

201

423

Employees are not required to contribute to the Plan. The Plan is subject to the minimum funding standards of the Public Retirement Systems Standards Law (Georgia Code Section 47-20-10). The GMEBS Board of Trustees has adopted an actuarial funding policy that requires a different funding level than the estimated minimum annual contribution to minimize fluctuations in annual contribution amounts and to accumulate sufficient funds to secure benefits under the Plan. If the City contributes the recommended contribution developed under the actuarial funding policy each year, the Plan will meet applicable state funding standards.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

At June 30, 2016, the City reported a liability of $7,332,565 as its net pension liability. The net pension liability was measured as of September 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2016. The City's net pension liability was based on the projection of the City's long-term contributions to the pension plan, actuarially determined at January I, 2016.

47


NOTE 12- EMPLOYEE RETIREMENT PLAN - CONTINUED

The following is a schedule reconciles the differences between the beginning and ending net pension liability for the year ended June 30, 2016:

Changes in Net Pension Liability Total Pension Fiduciary Net Net Pension Liability (TPL) Position (FNP) Liability (NPL)

{a} {b} {a)-{b} Balances at September 30, 2014* $ 23,856,931 $ 16,058,793 $ 7,798,138

Changes for the year: Service cost 227,258 227,258 Interest 1,792,817 1,792,817 Differences between expected and actual experience 750,194 750,194 Contributions - employer 1,271,784 (1,271,784) Contributions - employee Net investment income 215,191 (215,191) Benefit payments, including refunds of employee contributions (1,447,622) (1,447,622) Administrative expense (33,233) 33,233 Other Net changes 1,322,647 6,120 1,316,527

Balances at September 30, 2014** $ 25,179,578 $ 162064,913 $ 9,114,665

•Entry Age Normal liabilities calculated using ages and service amounts as of January I, 2015 are used to measure TPL as of September 30, 2014. The balances as of September 30, 2014 constitute measurements of the NPLfor the fiscal year ending June 30, 2015. ••Entry Age Normal liabilities calculated using ages and service amounts as of January 1, 2016 are used to measure TPL as of September 30, 2015. The balances as of September 30, 2015 constitute measurements of the NPL for the fiscal year ending June 30, 2016.

Detailed infonnation about the pension plan's fiduciary net position is available in the separately issued financial report.

48


NOTE 12 -EMPLOYEE RETIREMENT PLAN, CONTINUED

For the year ended June 30, 2016, the City recognized pension expense of $819, 787. Pension expense represents the change in the net pension liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss, actuarial gain/loss, actuarial assumptions or methods, and plan benefits. At June 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Differences between expected and actual experience Changes of assumptions Net difference between prQjected and actual eamin~s on pension plan investments City contributions subsequent to the measurement date

Total

Deferred Outflows of Resources

$ 1,494,067

856,870

~ 233503937

Deferred Inflows of Resources

$ 326,314 351,540

~ 6773854

Deferred outflows of resources and deferred inflows of resources above represent the unamortized portion of changes to the net pension liability to be recognized in future periods in a systematic and rational manner, as detailed below.

$856,870 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future years as follows:

Year Ending June 30, 2016 2017 2018 2019 2020 Thereafter

Total

Deferred Outflows Deferred Inflows of of Resources

$ 421,384 $ 421,384 419,424 231,875

$ 1,494,067 $

49

Resources (280,337) (280,337) (117,180)

(677,854)


NOTE 12-EMPLOYEE RETIREMENT PLAN, CONTINUED

Actuarial Methods and Assumptions

The total pension liability in the January I, 2016 actuarial valuation was detennined using the following actuarial assumptions. Total pension liability represents the actuarial present value of projected benefit payments attributable to past periods of service for current and inactive employees.

Actuarial Cost Method Amortization Method Remaining Amortization Period

Asset Valuation Method

Actuarial Assumptions: Inflation Net Investment Rate of Return PrQjected Salary Increases Cost of Living Ac\justments Retirement Age:

Normal Early

Mortality: Healthy

Disabled

Plan termination basis (all lives)

Entry Age Nonnal Closed level dollar for remaining unfunded liability Varies for the bases, with a net effective amortization period of I 0 years Sum of actuarial value at beginning of year and the cash flow during the year plus the assumed investment return, adjusted by I 0% of the amount that the value exceeds or is less than market value at end of year. The actuarial value is adjusted, if necessary, to be within 20% of market value.

3.25% 7.75% 3.25% plus service based merit increases 0.00%

65 with 5 years of service 55 with 10 years of service

RP-2000 Combined Healthy Mortality Table with sexdistinct rates, set forward two years for males and one year for females. RP-2000 Disabled Retiree Mortality Table with sexdistinct rates 1994 Group Annuity Reserving Unisex Table

The mortality and economic actuarial assumptions used in the January I, 2016 valuation were based on the results of an actuarial experience study for the period January 1, 2010 through June 30, 2014.

so


NOTE 12- EMPLOYEE RETIREMENT PLAN, CONTINUED

The 7.75% long-tenn expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target allocation as of September 30, 2015 are summarized in the following table:

Asset Class Domestic equity International equity Fixed income Real estate Cash

Total

Discount Rate

Target Allocation 50% 15% 25% 10% 0%

100%

Long-Tenn Expected Real Rate of Return

5.95% 6.45% 1.55% 3.75%

Long-Tenn Nominal Real Rate of Return

9.20% 9.70% 4.80% 7.00%

The discount rate used to measure the total pension liability was 7.75%, which is the same as the long-tenn expected rate of return. The projection of cash flows used to determine the discount rate assumed that contributions from the City will continue to be made at the recommended rates each year, actuarially determined. Based on that assumption, ·the pension fund's fiduciary net position was projected to be available to make all projected future benefit payments. In theory, the discount rate may differ from the long-term expected rate of return discussed previously. However, based on the projected availability of the pension fund's fiduciary net position, the discount rate is equal to the long-term expected rate of return on pension plan investments, and it was applied to all periods of projected benefit payments to determine the total pension liability.

The following presents the City's net pension liability calculated using the current discount rate, as well as what the net pension liability would be if it were calculated using a discount rate that is one percentage point higher or lower than the current rate:

Net pension liability $

1% Decrease (6.75%)

10,234,103

51

Current Discount Rate (7.75%)

$ 7,332,565 $

1% Increase (8.75%)

4,890,023


NOTE 13 - DEFERRED COMPENSATION PLAN

City of Waycross Deferred Compensation Plan

The City offers its employees a deferred compensation plan in accordance with IRS Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency.

The City funds are amounts of compensation deferred under the plan, at the direction of the covered employee, through investments in fixed and variable annuity contracts underwritten by Nationwide Life Insurance Company.

In accordance with current GASB pronouncements, the deferred compensation plan is no longer included in the financial statements. Plan assets are held in trust for the benefit of the plan participants and their beneficiaries, and will not be.diverted for any other purpose. Amendments to the laws governing Section 457, deferred compensation plans, substantially became effective January 1, 1997.

NOTE 14 - COMMITMENTS AND CONTINGENCIES

The City has participated in a number of federally assisted grant programs, principal of which are the FEMA Grant, CHIP Grants, and CDBG Grants. These programs are subject to program compliance audits by the grantors or their representatives. Such audits could result in request for reimbursement by the Federal and State agencies for expenditures disallowed under the terms and conditions of the appropriate agency. The amount of expenditures which may be disallowed by granting agencies cannot be determined at this time; although, the City expects such amounts, if any, to be immaterial.

Various claims and lawsuits are pending against the City. The City estimates that the potential claims from the pending lawsuits against the City, not covered by insurance, would not materially affect the financial statements of the City.

NOTE 15-JOINT VENTURES/RELATED ORGANIZATIONS

Under Georgia law, the City, in conjunction with other cities and counties in the eighteen county south Georgia area, is a member of the Southern Georgia Regional Development Commission (SGRC) and is required to pay annual dues thereto. During the year ended June 30, 2016 the City paid $17,708 in such dues. Membership in the SGRC is required by the Official Code of Georgia Annotated (OCGA) Section 50-8-34 which provides for the organizational structure of the RCs in Georgia. The RC Board membership includes elected officials from member counties and cities and nonpublic appointed members. The law defines RCs as "public agencies and instrumentalities of their members". Georgia laws also provide that the member governments are liable for any debts or obligations of an RC beyond its resources. Separate financial statements may be obtained from:

Southern Georgia Regional Commission 1725 South Georgia Parkway

Waycross, Georgia 31503

The Housing Authority of the City of Waycross, Georgia is considered a related organization based upon the criteria in GASB Statement 14. The Housing Authority is a legally separate entity having a board composed of a majority of members appointed originally by the City of Waycross, Georgia. The City of Waycross, Georgia is not able to impose its will upon the Housing Authority and a financial benefit/burden relationship does not exist between them. Therefore, based upon the criteria above, the Housing Authority of the City of Waycross, Georgia is a related organization.

52


NOTE 16 - RISK MANAGEMENT

The City is exposed to various risks of losses related to torts, thefts of, damage to, and destruction of assets, errors and omissions, injuries to employees, and natural disasters. During the fiscal year 1992, the City established internal service funds to account for and finance its uninsured risks of loss. The City maintains commercial insurance coverage covering general liability claims and property damage claims.

The City established a limited risk management program for health insurance in July 1991. The plan provides coverage for up to a maximum of $80,000 for each individual claim with a $1,000,000 lifetime maximum.

In January 1992, the City established a limited risk program for workers' compensation. The City hired Corvel Corporation as administrator for this program. The plan provides coverage for up to a maximum of $350,000 for each worker's compensation claim. The City purchases commercial insurance for these claims in excess of coverage provided by these funds and for all other insignificant risks of loss. Settled claims in the past three years have not exceeded the commercial coverages.

All funds of the City participate in the program and make payments to the funds based on estimates of the amounts needed to pay prior and current year claims and to establish a reserve for catastrophic losses.

Self-Insurance

The City maintains the Health Insurance Fund to account for the City's employee health care coverage, which is self-insured by the City. The City has established an internal service fund to account for its self-insurance program. The purpose of this fund is to pay medical insurance claims of the City employees and their covered dependents and minimize the total costs of annual insurance to the municipality. The private insurance carrier determines premium payments to be made by the City. Annual claims are paid from accumulated premium payments, and claims exceeding accumulated premium payments are paid by the private insurance carrier. Estimated claims incurred, but not reported, of $206,166 have been recorded as of June 30, 2016. Dependent coverage is funded by charges to employees. Revenues are recognized from payroll deductions and City contributions. The Claims liability of $206, 166 reported in the Health Insurance Fund at June 30, 2016 is based on the requirements of Governmental Accounting Standards Board Statement No. I 0, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the claims liability amount in the fiscal years 2014-2016 were:

Balance Claims and Balance Fiscal Beginning of Changes in Claims End of Year Fiscal Year Estimates Payments Fiscal Year

2014 171,682 1,615,879 1,638,045 149,516 2015 149,516 2,338,684 2,150,891 337,309 2016 337,309 2,122,748 2,253,891 206,166

53


NOTE 16 - RISK MANAGEMENT, CONTINUED

Also, the City has. est~blished an internal service fund to account for its self-insurance program relating to workers compensation insurance. The purpose of this fund is to pay worker's compensation claims of the city e~ploy~es while minimizing the total costs to the municipality. The City maintains a stop-loss policy with a private msurance company. City officials believe that the reserve in this fund is adequate to cover any incurred, but not reported, losses through the statement date. Changes in the claims liability amount in the fiscal years 2014-2016 were:

Balance Claims and Balance Fiscal Beginning of Changes in Claims End of Year Fiscal Year Estimates Payments Fiscal Year

2014 36,586 295,531 309,702 22,415 2015 22,415 345,534 344,563 23,386 2016 23,386 493,609 472,745 44,250

NOTE 17 - OTHER POST EMPLOYMENT BENEFITS

The City provides certain health care benefits for retired employees through a single employer Other Post Employment Benefit plan, in which all employees may become eligible for benefits if they qualify for early retirement or nonnal retirement (See Note 12). The plan is administered by an independent third party administrator, Group Resources. All retired employees are provided $1,000 of life insurance coverage which is fully funded by insurance. The total cost to provide retiree health care benefits is paid from the Health Insurance Fund, an internal service fund, and is recognized as paid. The plan does not issue separate financial statements. The City also provides health care benefits for tenninated employees who elected coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) for a period of 18 to 24 months. Employees electing this coverage pay· 100% of the premium.

As of July I, 2016, employee membership data relative to the OPEB plan consist of the following:

Current Retirees, beneficiaries, and dependents Current active participants

Total membership in the plan

Summary of Significant Accounting Policies

18 196

214

The accrual basis of accounting is used with respect to the recognition in the financial statements of contributions in the fonn of insurance premiums made to the plan. Plan investments, if any, are reported at their fair value at the repo11ing date. As of June 30, 2016 the plan rep011ed no assets.

Funding Policy

The contribution requirements are established and may be amended by the City. Funding for the plan is derived from member contributions and employer contributions. A retired employee, who is participating in the employer's medical program is eligible to elect post-retirement coverage if they .retire at or after age 65 with 5 year of service, age 60 with 30 years of service or age 55 with at least 10 years of service, and eligible for immediate early retirement benefits under the City of Waycross Retirement Plan. Retirees pay a flat po11ion of the premium in effect at their retirement date for medical coverage and dental coverage.

54


NOTE 17 - OTHER POST EMPLOYMENT BENEFITS, CONTINUED

Annual OPEB Cost and Net OPEB Obligation

The City's most recent actuarial valuation was perfonned for the plan as of July 1, 2016 to detennine the funded status of the plan as of that date as well as the employer's annual required contribution (ARC) for the period according to the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover nonnal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The City's annual OPEB cost is $397, 170.

The following table reflects the components of the City's annual OPEB costs for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation:

Net OPEB (NOO) as of July 1, 2015

Annual Required Contributions (ARC) Interest on Existing (NOO) ARC Adjustment Annual OPEB Cost

Annual Employer Contribution Change in Net OPEB Obligation

Net OPEB Obligation as of June 30, 2016

$

$

556,308

397,170 22,252

(30,934) 388,488

(275,872) 112,616

668,924

The City's annual OPEB cost, the percentage of annual cost contributed to the plan, and the net OPEB obligation is as follows:

Year Annual OPEB Cost OPEB Ended OPEB Cost Contributed Obligation

6/30/2016 $ 397,170 69.5% $ 668,924 6/30/2015 397, 170 55.9% 556,308 6/30/2014 305,000 94.4% 387,000 6/30/2013 298,000 87.6% 370,000 6/30/2012 218,000 66.1% 333,000 6/30/2011 213,000 66.7% 259,000

55


NOTE 17 - OTHER POST EMPLOYMENT BENEFITS, CONTINUED

Funded Status and Funding Progress

Actuarial valuation date Actuarial value of assets Actuarial accrued liability

$ July 1, 2016

5,003,527 Total unfunded actuarial liability Funded ratio

5,003,527 0.00%

6,658,368 Annual covered payroll $ Ratio of unfunded actuarial liability

to annual covered payroll 75.15%

Date prior to 2009 is not available. As the Plan gains experience, this table and the schedules found in the Required Supplementary Information section will show multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.

Actuarial Assumptions and Methods

Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. As such, actuarial calculations reflect a long-term perspective. Actuarial determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial liabilities and the actuarial value of assets. Significant actuarial assumptions and other information used to compute the actuarial accrued liability and the annual required contribution of the plans are as follows:

Actuarial Method Actuarial Cost Method Amortization Method Remaining Amortization period Asset Valuation Method

Actuarial Assumptions: Investment Rate of Return Medical and drug cost trend rate

Projected Unit Credit Cost Method 2.5% Increase over 30 years, Level dollar, open 30 years as of July 1, 2016 Market Value

7% prefunded or 4% pay-as-you-go 9% graded to 5% over 9 years

Full participation by the eligible population is assumed. The valuation does not use a core inflation rate directly, although inflation trends are reviewed to ensure consistency in the selection of the discount rate and the medical trend rate. Calculations are based on the types of benefits provided under the plan at the time of each valuation and on the pattern of cost sharing between the employer and plan members to that point. The City has not entered into any long-term contracts for contributions to the Plan with any party, and accordingly, there were not amounts of contractually required contributions outstanding at the report date.

56

REQUIRED SUPPLEMENTAL INFORMATION

Required supplemental information includes financial information and disclosures that are required by the GASB but are not considered part of the basic financial statements. Such information includes:

• Schedule of Changes in the Net Pension Liability- Last 10 Fiscal Years

• Schedule of Pension Contributions - Last 10 Fiscal Years

• Notes to Pension Schedules

• Schedule of Funding Progress -Other Post-Employment Benefits

• Budgetary Comparison Schedule - General Fund

CITY OF WAYCROSS, GEORGIA SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY - LAST 10 FISCAL YEARS

Total pension liabilitv Service cost Interest Differences between expeclCd and actual experience Changes of assumptions Changes orbenefit tenns Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability- beginning Total pension liability- ending (a)

Pion Oducjary net pP#tion Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds or employee contributions Adminisuative expense Other Net change in fiduciary net position Plan fiducilll}' net position - ~nning Plan fiduciary net position - ending (b)

2016

$ 227,258 1,792,817

750,194

(1,447,622) 1,322,647

23,856,931 $25,179,578

s 1,271,784

215,191

(l,447,622) (33,233)

6,120 17,840,893

$17,847,013

2015

$ 251,053 1,793,391

7,838 (652,628)

(1,366,508) 33,146

23,823,785 $23,856,931

s 1,346,236

1,828,654

( 1,366,508) (26,282)

1,782,100 16,058,793

$17,840,893

Net pension liability-ending (a)-(b) S 7,332,565 S 6,016,038

Plan's fiduciary net position as a percentage

Year Ended June 30: 2014 2013 2012 2011 2010

(Historical inronnation prior to implcmen1ation or GASB 68 is not required)

(Historical information prior to implementation ofGASB 68 is not required)

or the total pension liability 70.88% 74.78% (Historical infonnation prior to implementation ofGASB 68 is not required)

Covered employee payroll S 6,658,368 S 6,733,231

Net pension liability as a percentage or covered employee payroll 110.13% 89.3S%

51

2009 2008 2007

Actuarially dctennined contribution Contributions in relation to the actuarially detennined contribution Contribution deficiency (excess)

Covered employee payroll Contributions as a percentage of covered employee payroll

CITY OF WAYCROSS, GEORGIA SCHEDULE OF PENSION CONTRIBUTIONS - LAST 10 FISCAL YEARS

Year Ended June 30: 2016 2015 2014 2013 2012 2011 2010 2009

• 1,313,925 • 1,314,801

• (876) (Historical infonnation prior to implementation of GASB 68 is not required)

• 6,733,231

• 19.53%

• 2016 information will be determined after f1Scal year end and will be included in the 2017 valuation rcpon.

58

2008 2007

CITY OF WAYCROSS, GEORGIA NOTES TO PENSION SCHEDULES

NOTE 1-SIGNIFICANT METHODS AND ASSUMPTIONS

Valuation Date

The actuarially detennined contribution rate was detennined as of January I, 2016, with an interest adjustment to the fiscal year. Contributions in relation to this actuarially detennined contribution rate will be reported for the fiscal year ending June 30, 2017.

Actuarial Methods and Assumptions

The following actuarial methods and assumptions were used to detennine contribution rates:

Actuarial Cost Method Amortization Method Remaining Amortization Period

Asset Valuation Method

Actuarial Assumptions: Inflation Net Investment Rate of Return PrQjected Salary Increases Cost of Living Adjustments Retirement Age:

Normal Ear'y

Mortality: Healthy

Disabled

Plan termination basis (all lives)

Entry Age Nonna) Closed level dollar for remaining unfunded liability Varies for the bases, with a net effective amortization period of 10 years Sum of actuarial value at beginning of year and the cash flow during the year plus the assumed investment return, adjusted by 10% of the amount that the value exceeds or is less than market value at end of year. The actuarial value is adjusted, if necessary, to be within 20% of market value.

3.25% 7.75% 3.25% plus service based merit increases 0.00%

65 with 5 years of service 55 with 10 years of service

RP-2000 Combined Healthy Mortality Table with sexdistinct rates, set forward two years for males and one year for females. RP-2000 Disabled Retiree Mortality Table with sexdistinct rates 1994 Group Annuity Reserving Unisex Table

59

CITY OF WAYCROSS, GEORGIA NOTES TO PENSION SCHEDULES

NOTE 2- CHANGES IN ASSUMPTIONS AND BENEFITS

Changes in Assumptions

The administrative expense assumption was updated for fiscal years beginning in 2016. The administrative expense changed from $5,000 plus $50 per participant plus 0.05% of the market value of assets to a base fee of $6,500 plus $54 per active and terminated vested participant plus $66 per retiree and beneficiary plus 0.06% of the market value of assets.

Benefit Changes

No changes to benefits were noted in the current year.

60

CITY OF WAYCROSS, GEORGIA REQUIRED SUPPLEMENTAL INFORMATION

UNAUDITED

Funded Status and Funding Progress: Other Post Employment Benefits

Actuarial Actuarial Actuarial Value of Accrued Unfunded Funded Valuation Assets Liability AAL Ratio

Date (a) (b) (b-a) (alb)

7/1/2008 2,660,000 2,660,000 0.00% 7/1/2010 2,664,000 2,664,000 0.00% 7/1/2012 4,386,000 4,386,000 0.00% 7/1/2014 4,206,176 4,206,176 0.00% 7/1/2016 5,003,527 5,003,527 0.00%

AAL based on a pay-as-you-go-plan

61

CITY OF WAYCROSS, GEORGIA BUDGETARY COMPARISON SCHEDULE

GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2016

BUDGETED AMOUNTS ORIGINAL FINAL

Revenues Taxes $ 9,376,022 $ 9,376,022 Fees and fmes 504,000 504,000 Licenses and pennits 857,600 857,600 Intergovernmental 141,000 141,000 Charges for services 27,500 27,500 Investment earnings 4,500 4,500 Miscellaneous 229,900 229,900 Transfers In 178,880 178,880 Proceeds from capital leases

Total Revenues 1113191402 11,3191402

Expenditures Current:

General govenunent 670,926 756,214 Public safety 7,887,045 7,814,095 Public works 1,884,417 1,861,579 Community development 687,609 698,109

Debt Service: Principal 168,366 168,366 Interest and other charges 211039 211039

Total Expenditures 1113191402 11,3191402

Excess (Deficiency) Of Revenues Over Expenditures

Fund Balances - Beginning of Year Fund Balances - Ending of Year

4591271 4591271 $ 4591271 $ 4591271


ACTUAL VARIANCE AMOUNTS WITH FINAL

BUDGETARY BUDGET OVER BASIS (UNDER)

$ 8,750,422 $ (625,600) 301,312 (202,688) 878,033 20,433 135,531 (5,469) 32,930 5,430

510 (3,930) 198,951 (30,949) 212,897 34,017

101510!646 (8081756)

432,707 323,507 7,484,684 329,411 1,756,299 105,280

660,733 37,376

152,840 15,526 19099 I 940

1015061362 8131040

4,284 4,284

4591271 $ 4631555 $ 4.284

COMBINING AND INDIVIDUAL FUND SCHEDULES

Revenues Intergovernmental Interest

Total Revenues

Expenditures Current:

Capital Outlay

Total Expenditures


SPLOST 2008-2013 FUND FOR THE YEAR ENDED JUNE 30, 2016


$ $

3,030,000 3,030,000

31030,000 310301000

(Deficiency) Of Revenues Over Expenditures (3,030,000) (3,030,000)

Fund Balances - Beginning of Year Fund Balances- Ending of Year

21964,012 219641012 $ {65,988} $ {651988}

The accompanying notes are an integral part of these statemenrs. 63

ACTUAL AMOUNTS

BUDGETARY BASIS

$ 3 941

3 941

374,631

3741631

(370,690)

219641012 $ 215931322

VARIANCE WITH FINAL

BUDGET OVER (UNDER)

$ 3 941

3 941

2,655,369

216551369

2,659,310

$ 2,6591310


SPLOST 2014 FUND FOR THE YEAR ENDED JUNE 30, 2016


Revenues Intergovernmental $ 1,797,000 $ 1,797,000 Interest

Total Revenues 1,797,000 1,797,000

Expenditures Capital Outlay 1,797,000 1,7971000

Total ExpendilUres 1,7971000 1,7971000

Excess (Deficiency) Of Revenues Over Expenditures

Fund (Deficit) • Beginning of Year Fund (Deficit)· Ending of Year

1,687.901 1,6871901 $ 1.687,901 $ 1,687,901

The accompanying notes arc an integral pan of these statements. 64

ACTUAL AMOUNTS VARJANCE WITH

BUDGETARY FINAL BUDGET BASIS OVER (UNDER)

$ 2,233,967 $ 436,967 l 755 l 755

2,235,722 438,722

794,296 1,002,704

794 296 1,002,704

1,441,426 1,441,426

11687,901 $ 3,129,327 $ 1,441,426

ASSETS Cash and cash equivalents s Due from other funds Other receivables

Total assets

LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds

Total liabilities

Defernd Inflows of Resources Unavailable revenue

TotaldcferrcdinOowsofresources

Fund balances: Restricted Committed Assigned Unassigned

Total fund balances

Total liabilities, deferred inflows and fund balances $

CITY OF WAYCROSS, GEORGIA COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2016

SPECIAL REVENUE FUNDS

FORFEITED WPDINFO CEMETARY PROPERTY JAIL FUND TECHNOLOGY

s 22,6S8 s 126 $ 17,046

2600 2600 22,6S8 126 17046

39,866

39,866

22,658 126

17,046 (37~66} (37~66} 22658 126 17046

2,600 s 22,658 s 126 s 17046

65

COMMUNITY REVOLVING DEVELOPMENT LOAN

s 73,698 $ 46,900

llO~SS 73698 157,185

157,18S 73,698

73698 IS718S

s 73 698 s 157,185


Total assets


Total liabilities

Defernd lnOows of Resources Unavailable revenue

Total deferred inflows of resources


Total fund balances

Total liabilities and fund balances $




HOTEUMOTEL FIRE DEPARTMENT FEMAGRANTS MISC GRANTS TAX

4,3S1 s S66 s 13,377 $ SS,IS1

4 3S7 566 13,377 SS 157

304

304

4,357 S66 13,377 S4,8S3

4 3S7 S66 13.377 S4,8S3

4,3S7 s S66 s 13,377 s 55,157

66

CEMETARY MISC FUND TRUST WAYFEST

$ 4,99S $ 78,253 $ 588

4995 78,253 S88

78,2S3 4,99S S88

4 99S 78.2S3 S88

s 4995 s 78.253 $ 588


Total assets


Total liabilities

Deferred Inflows of Resources Unavailable revenue

Total deferred inflows of resources


Total fund balances

Total liabilities, deferred inflows and fund balances $



SPECIAL REVENUE FUNDS CAPITAL PROJECT FUNDS

LT JEFFLJTILE CAPITAL SCHOLARSHIP ATM MACHINE SP LOST RESERVE

9,072 s 27,695 $ $ 146,041 $ 193,592

9072 27695 339,633

26000 375,000 26,000 375,000

9,072 1,695 (35J61}

9072 1695 (35,361}

9072 $ 27,695 s $ 339,633 s

67

TOTAL OTHER GOVERNMENTAL

LMIG FUNDS

169,094 $ 669,623 193,592 112.885

169094 976100

40,170 401000 441170

169,094 422,216 151,951 33,396

(72,633} 169,094 534930

169,094 s 976100

CITY OF WAYCROSS, GEORGIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2016


FORFEITED WPDINFO COMMUNITY CEMETARY PROPERTY JAIL FUND TECHNOLOGY DEVELOPMENT

REVENUES Taxes s s s s s Fees 19,762 15,959 Intergovernmental Investment earnings 3 Miscellaneous 151.208 612 Total revenues 151~08 19765 612 15959

EXPENDITURES

Current: General government Public Safety 23,749 669 29,389 Community development 201,742 2,060 Capital outlay Total Expenditures 201,742 23749 669 29~89 ~060 Excess (deficiency) of revenues over expenditures {50~34} !31984} {51} {13,430} {2,060}

OTHER FINANCING SOURCES (USES) Transfmout Total other financing sources and (uses)

Net change in fund balances (50,534) (3,984) (57) (13,430) (2,060)

Fund balances - bcgiMing 13~68 26642 183 30476 75758

Fund balances - ending s (37~66} s 22,658 s 126 $ 17046 s 73698

EIP REVOLVING

LOAN

s

II 8~99 8410

8410

8,410

148 775

s 157,185




HOTEUMOTEL CEMETARY FIRE DEPARTMENT FEMAGRANTS MISC GRANTS TAX MISC FUND TRUST

REVENUES Taxes $ s s s 341,533 s s Fees 1,SOO Intergovernmental 3,262 Investment earnings Miscellaneous 6603 Total revenues 8 103 3J62 341~33

EXPENDITURES

Cum:nt: General government Public Safety 7,210 Community development 121,661 Capital outlay T 0181 Expenditures 7JIO 121,661 Excess (deficiency) of revenues over expenditures 893 3J62 219,872

OTHER FINANCING SOURCES (USES) Transfers out ~212,897} Total other financing soUJCeS and (uses) (212,897}

Net change in fund balances 893 3,262 6,97S

Fund balances - beginning 3464 566 10115 47878 4~95 78~3

Fund balances • ending s 4J51 s S66 s 13JTI s 54,153 s 4.99S s 78~53

69

WAYFEST

$

5 833 5 833

14,417

14417

(8,584)

(8,584)

9172

s 588

REVENUES Taxes s Fees Intergovernmental Investment earnings Miscellaneous Tolal revenues

EXPENDITURES

Current Gcntral government Public Safety Community development Capital outlay Total Expenditures Excess (deficiency} of revenues over expenditures

OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources and (uses}

Net change in fund balances

Fund balances - beginning

Fwul balances - ending s



SPECIAL REVENUE FUNDS CAPITAL PROJECT FUNDS

TOTAL OTHER LT JEFF LITTLE CAPITAL GOVERNMENTAL SCHOLARSHIP ATM MACHINE SP LOST RESERVE LMIG FUNDS

s s s s s 341,533 1,506 38,727

169,094 172,356 18 138 170

5~03 177858 5~03 1 S24 138 1691094 730644

349 349 61,017

4,000 343,880 50SJ06 333,206 839J12

4000 349 ' S05J06 333,206 IJ44,458

IJ03 I 175 {5051168} {164,812} {5131814}

{212,897} (21~897}

1,203 1,175 (505,168) (164,812} (726,711)

7 869 520 505,168 (35J67} 3331906 IJ6I,641

9072 s 1,695 s s {35J67} s 169,094 s 534,930

70

CITY OF WAYCROSS, GEORGIA CEMETERY FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE COMPARED TO BUDGET FOR THE FISCAL YEAR ENDED JUNE 30, 2016

ACTUAL VARIANCE WITH AMOUNTS FINAL BUDGET

BUDGETED AMOUNTS BUDGETARY OVER ORIGINAL FINAL BASIS (UNDER)

Revenues: Miscellaneous s 16S,037 $ 16S,037 $ ISl,208 $ (13,829) Transfers In 40000 40000 {40,000}

Total Revenues 20S,037 20S,037 ISl,208 {53,829}

Expenditures: Community development 20S1037 20S,037 201 742 329S

Total Expenditures 20S,037 20S,037 201 742 329S

Revenues Over (Under) Expenditures (50,534) (50,S34)

Fund Balance - Beginning 13 268 13,268 13 268

Fund Balance (Deficit) - Ending s 13,268 $ 13,268 $ Q7,266} $ {50,534}

71

CITY OF WAYCROSS, GEORGIA FORFEITED PROPERTY FUND



BUDGETED AMOUNTS BUDGET ARV OVER ORIGINAL FINAL BASIS (UNDER)

Revenues: Fees $ $ $ 19,762 $ 19,762 Investment earnings 3 3

Total Revenues 19 765 19765

Expenditures: Public safety 23 749 {23,749)

Total Expenditures 23 749 {23,749)

Revenues And Other Financing Sources Over (Under) Expenditures (3,984) (3,984)

Fund Balance • Beginning 26642 26,642 26,642

Fund Balance· Ending $ 26,642 $ 26,642 $ 22.658 $ {3,984)

72

CITY OF WAYCROSS, GEORGIA JAIL FUND




Revenues: Miscellaneous s s $ 612 $ 612

Total Revenues 612 612

Expenditures: Public safety 669 {669}

Total Expenditures 669 {669}

Revenues And Other Financing Sources Over (Under) Expenditures (57) (57)

Fund Balance • Beginning 183 183 183

Fund Balance • Ending s 183 $ 183 $ 126 $ (57}

73

CITY OF WAYCROSS, GEORGIA WPD INFORMATION TECHNOLOGY FUND




Revenues: Fees $ 30.000 $ 301000 $ 15 959 $ 14041

Total Revenues 30000 30000 15 959 14041

Expenditures: Public safety 30000 30000 29389 611

Total Expenditures 30000 30000 29389 611

Revenues And Other Financing Sources Over (Under) Expenditures (13,430) 13,430

Fund Balance • Beginning 30476 30476 30476

Fund Balance • Ending $ 30476 $ 30476 $ 17046 $ 13,430

74

CITY OF WAYCROSS, GEORGIA COMMUNITY DEVELOPMENT




Revenues: Miscellaneous $ $ $ $

Total Revenues

Expenditures: Community development 2060 {2,060}

Total Expenditures 2060 {2,060}

Revenues And Other Financing Sources Over (Under) Expenditures (2,060) (2,060)

Fund Balance - Beginning 75758 15 758 15 758

Fund Balance - Ending s 75,758 $ 75,758 $ 73,698 $ ~,060}

75

CITY OF WAYCROSS, GEORGIA EIP REVOLVING LOAN FUND



BUDGETED AMOUNTS BUDGET AR\' OVER ORIGINAL FINAL BASIS (UNDER)

Revenues: Miscellaneous s s s 8,399 s (8,399) Interest earnings II II

Total Revenues 8410 {8,388)

Expenditures: General government

Total Expenditures

Revenues And Other Financing Sources Over Expenditures 8,410 (8,388)

Fund Balance - Beginning 148 775 148 775 148 775

Fund Balance - Ending s 148,775 $ 148,775 s 157,185 $ 8410

76

CITY OF WAYCROSS, GEORGIA FmE DEPARTMENT


ACTUAL VARIANCE WITH Al\.IOUNTS FINAL BUDGET


Revenues: Miscellaneous $ $ $ 6,603 $ 6,603 Fees I 500 {l,SOO}

Total Revenues 8103 s 103

Expenditures: Public safety 7210 (7,210}

Total Expenditures 7210 (7,210}

Revenues And Other Financing SolllCCS Over Expenditures 893 (2,107)

Fund Balance • Beginning 3464 3 464 3 464

Fund Balance • Ending $ 3,464 s 3 464 $ 4JS7 $ Q,107}

77

CITY OF WAYCROSS, GEORGIA FEMA GRANTS FUND




Revenues: Intergovernmental $ $ $ $

Total Revenues

Expenditures: Public safety

Total Expenditures

Revenues And Other Financing Sources Over Expenditures

Fund Balance - BegiMing 566 566 566

Fund Balance - Ending $ 566 $ 566 $ 566 $

78

CITY OF WAYCROSS, GEORGIA ' MISC GRANTS FUND




Revenues: lnlergovemmcntal s $ $ 31262 $ 3262

Total Revenues 3 262 3262

Expenditures: General govcmrnent

Total Expenditures

Revenues And Other Financing Sources Over Expenditures 3,262 3,262

Fund Balance • BcgiMing 10 115 10 115 10 ll5

Fund Balance • Ending $ 10.115 $ 101115 $ 13 377 $ 3,262

79

CITY OF WAYCROSS, GEORGIA HOTEUMOTELTAXFUND




Revenues: Taxes $ 299,353 $ 299,353 $ 341,533 $ (42,180}

Total Revenues 299,353 299,353 341,533 (42,180}

Expenditures: Community development 120,473 120,473 121,661 (1,188) Transfers out 178 880 178 880 212,897 (34,017}

Total Expenditures 299,353 299,353 334,558 C35,20S}

Revenues And Other Financing SollfCCS Over Expenditures 6,975 (6,975)

Fund Balance - Beginning 47 878 47 878 47 878

Fund Balance - Ending $ 47,878 $ 47,878 $ 54,853 $ {6,97S}

80

CITY OF WAYCROSS, GEORGIA MISC FUND





Total Revenues

Expenditures: General government

Total Expenditures



Fund Balance - Ending s 4995 $ 4 995 s 4995 s

81

CITY OF WAYCROSS, GEORGIA CEMETERY TRUST FUND





Total Revenues

Expenditures: Transfers out

Total Expenditures



Fund Balance - Ending $ 781253 $ 781253 $ 78~53 $

82

CITY OF WAYCROSS, GEORGIA WA YFEST FUND


ACTUAL VARIANCE WITH AMOUNl'S FINAL BUDGET


Revenues: Miscellaneous s s s 5 833 s (5,833}

Total Revenues 5 833 (5,833}

Expenditures: Community development 14417 (14,417}

Total Expenditures 14 417 (14,417)

Revenues And Olher Financing Sources Over (Under) Expenditures (8,584) 8,584

Fund Balance - Beginning 9172 9172 9172

Fund Balance - Ending s 9172 s 9172 s 588 s 8 584

83

CITY OF WAYCROSS, GEORGIA LT JEFF LITILE SCHOLARSHIP FUND




Revenues: Miscellaneous $ s s 5203 s C5.203l

Totnl Revenues 5203 (5,203}

Expenditures: Community development 4000 (4,000}

Total Expenditures 4000 (4,000}

Revenues And Other Financing Sources Over Expenditures 1,203 (1,203)

Fund Balance • Beginning 7 869 7 869 7 869

Fund Balance· Ending $ 7 869 s 7 869 s 9072 s {1,203}

84

CITY OF WAYCROSS, GEORGIA ATM MACHINE FUND




Revenues: Fees s s s l,S06 s (1,506) Investment earnings 18 (18) Miscellaneous

Total Revenues I S24 (1,S24}

Expenditures: General Government 349 (349}

Total Expenditures 349 (349}

Revenues And Other Financing Sources Over Expenditures l,17S {l,17S)

Fund Balance - Beginning S20 S20 S20

Fund Balance - Ending s S20 s S20 s 1695 s {1,17S}

BS

CITY OF WAYCROSS, GEORGIA SPLOSTFUND




Revenues: Investment earnings s s 138 s (138}

Total Revenues 138 (138}

Expenditures: Capital outlay SOS,306 (SOS,306}

Tolal Expenditures sos 306 (SOS,306}

Revenues And Other Financing Sources Over (Under) Expenditures (SOS,168) SOS,168

Fund Balance • Beginning sos 168 sos 168 sos 168

Fund Balance • Ending s SOS,168 s SOS,168 s s SOS,168

86

CITY OF WAYCROSS, GEORGIA CAPITAL RESERVE FUND




Revenues: Intergovernmental $ $ $ $

Total Revenues

Expenditures: Capital outlay

Total Expenditures


Fund (Deficit) - Beginning {3S,367) (lS,367} (3S,367}

Fund (Deficit) - Ending $ {3S,367} $ {3S,367) $ {3S,367} $

87

CITY OF WAYCROSS, GEORGIA LMIGFUND




Revenues: Intergovernmental s s s 169,094 s {169,094}

Total Revenues 169094 {169,094}

Expenditures: Capital outlay 333 906 (333,906)

Total Expenditures 333906 (333,906)

Revenues And Other Financing Sources Over (Under) Expenditures (164,812) 164,812

Fund Balance - Beginning 333,906 333,906 333,906

Fund Balance - Ending $ 333,906 s 333,906 $ 169,094 s 164,812

88

CITY OF WAYCROSS, GEORGIA COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS JUNE 30, 2016

89

ASSETS Curren! assets:

Cash 11nd cash cquiwlents Accounts Receivables, net Due from other funds Inventories Prepaid Expenses

Total current BSSCts Non-current asseu:

Capillll Assets: Buildings Utility System Equipment 1111d Furniture

Less Accumulated depreciation Total non-c:urrcnt llSSCts

Tollll assets

LIABILITIES Current Uabilities:

Accounts payable S11laries payable Due to other funds Compcnsalcd 11bscnccs

Tollll current liabilities Tot11l li11bilitics

NET POSITION Net investment in C11pital assets Unrestricted

To111I net posi1ion

s

CITY OF WAYCROSS, GEORGIA COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS JUNE 30, 2016

TOTAL INTERNAL

WAREUOUSE CITY GARAGE SERVICE FUNDS

s 12,234 s 1,064,221 16,146

60,273 724,052 34,092 34,092

24633 60273 46,326 I 863 144

138,321 138,321 70,663 70,663

100,170 100,170 {306~85) {306~85)

6769 2769 60273 49095 1,865,913

57,803 2,156,031 4,684 4,684

872,842 17931 17931

57 803 22,615 310511488 57 803 22,615 3,051,488

2,769 2,769 2470 23711 {l,188~44)

s 2470 s 26,480 s {l,185,57S)

90

CITY OF WAYCROSS, GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES

IN FUND NET POSITION INTERNAL SERVICE FUNDS


LIABILl1Y HEALTII WORKERS INSURANCE INSURANCE RETIREMENT COMPENSATION

REVENUES Charges for scMces s $ 496,037 $ $ Opcpling conlnliuliom ~373 11sgsoo 1114!!.047 345002

Total opcraling RYCnucs 2661373 ~0481537 111481047 345002

OPERATING EXPENSES Pcnonal scmces Conll'Klllal scmces Repairs and nuintcnancc lnsuranco c:lalms and cxpcnsca 213,530 2,721,914 566,671 Retimncnt paymcnll 1,142,494 DqJRdalion

Total opcnting cxpcnsca 21~530 ~7211914 1114~494 ~671 Operating income (loss) 5~843 (673137Zl 51553 (2211669)

NON-OPERATING REVENUES (EXPENSES) lnletcst and lnYCSCmcnt miaiuo Misccllancous n:vcnu: 14410

Total non-operating l'C\ICllUO (expenses) 14 410 Income (Ion) before contnllulions and iransfcrs 52,843 (658,967) 5,553 (221,669)

Transfers out Chango In nd posllion 52,843 (658,967) 5,553 (221,669)

Total nd position • beginning 6741465 G21~ss1i 3381072 119 338 Total nd position· ending $ 7271308 $ ~871,848! $ 343,625 $ 5571669

91

PAYROLL

$

6 IS1SS4 ts1s60 lS,560

15,560 131161

s 281721

CITY OF WAYCROSS, GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES

IN FUND NET POSITION INTERNAL SERVICE FUNDS


TOTAL INTERNAL SERVICE

WAREHOUSE CllYGARAGE FUNDS REVENUES Charges for scniccs $ $ $ 496,037 Opcnitlng granll and conbt"bulions 111970 3551522 3,779,414

Toll! opcntlng mawcs 111,970 3551522 412751451

OPERATING EXPENSES PcllOnal scrvicca 109,730 300,812 410,542 Conlraclual scniccs 21,814 21,814 Rcpain and mainlcmncc 32,812 32,812 Insurance claims and cxpcnsca 3,502,llS Rctircmcnl paymcnl.s 1,142,494 Dcprccialion ~316 ~316

Total opcntlng cxpcnscs 109,730 357,754 5111~093 Operating income (loss) ~240 Q.232} {836,642}

NON.OPERATING REVENUES (EXPENSES) Interest and imalmcnt RYCllUO 6 Miscc1Lvtco111 l'CYCllUC 29,964

Total non-opcnating nMnuo (cxpc:nscs) 29,970 Income (lou) before conlribulions and lransfcrs 2,240 (2,232) (806,672)

Transfcn OUI Clwigo in net position 2,240 (2,232) (806,672)

Total net position • beginning 230 2s1112 Q78,903} Total net position • ending $ ~470 s 2§i480 s (1,185,575)

92

Cash Flows From Operating ActMtles Cash rm:ived fium customm Cash paid to suppliers Cash paid ID employees

Net Cash Provided By (Used In) Operating Aetivilies

Cash Flows From Noncapltal Financing Activities Misccllmlcous non-opcnlling revenue

Net Cash Provided By Nom:apiral Financing Aetivities

Cash Flows From Investing Activities lnteiest on cash dcposiu

Net Cash Provided By (Used In) Investing Activities Net Increase (Decrease) in Cash Cash Beginning of Year Cash al End of Year

CITY OF WAYCROSS, GEORGIA COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS FOR THE YEARENDEDJUNE30,2016

LIABILITY HEALTH INSURANCE INSURANCE RETIREMENT

s 266,374 s 2,046,162 s 1,148,047 (213,531) (2,060,572) (1,142,494)

52,843 (14,410} 5 553

14410 14410

S2,843 5,SS3 518,552 26995 120,822

s 631J9S s 26,995 s 126~75

BECONCl!.IA TJON Qf QPEl!Am!G lr:lg}ME (bQ~ IQ r:IEI C6fil! l!BQVlDEU !!l'. (!lSED lt!l Qf!ERA Tlr:I~ 6rnmlE§

OpctDting Income (Loss) s 52,843 $ (673,377) s 5,SS3 Adjusttncnu To Reconcile Net Income (Loss) To Net Cash

Provided By (Used In} Opc:rating Activities: Depreciation and nmonizalion

Change in Assets and Liabilities: Accounts l'CQ:ivuble (2,375) Inventories Prepaid expenses Accounts payable 661,342 Accrued expenses

Net Cash Provided By (Used In} Operating Activities s 52,843 s (14,410) s 5~53

Cash Per Financial Statements, Including lnvesttnents s 631,395 s 26,995 s 126,375 Less: Non-Cash Equivalents Total Cash s 631J9S s 26,995 s 126~7S

91

WORKERS COMPENSATION PAYROLL

s 345,002 s (4,211) (539,089)

(194,087} (4~111

15~54 15~S4

6 6

(194,087) 11,349 424 976 24984

s 230,889 s 36J33

$ (221,669) $

6,719 20,863

s (194,087} s ~4~11}

s 230,889 s 36,333

s 230,889 $ 36J33

Cash Flows From Operotlng Actlvltles Cash received from custometS Cash paid to suppliers Cash paid to employees

CITY OF WAYCROSS, GEORGIA COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2016

WAREHOUSE CITY GARAGE

$ 111,970 $ 3S3,4S7 $ (2,239) (S4,626)

{109,731} {300J79} Net Cash Provided By (Used In) Operating Activities {1~8}

Casb Flows From None11pltal Flnnndng Activities Miscellaneous non-operating =uc

Net Cash Provided By Nom:apital Financing Activities

Casb Flows From Invatlng Activities lntCICSI on cash deposits

Net Cash Provided By (Used In) lnvcsting Activities Net Increase (Decrease) In Cash (l,S48) Cash Beginning of Year 13782 Cash at End of Year s s 12,234 $

TOTAL

4,266,801 (4,012,SSI)

{410,110} (1551860}

29964 29964

6 6

(12S,890) I 190 111 1,064~1

RECOl:iklLl6 TIO!:!! QF QPERATll:!!G ll:i~QME a.QSSl IQ NET ~6!iH PRO~!ll;I! BY (!!SED ll:i) OPEBa!Ili!:! 6CTIVITIE!i

Opernting Income (Loss) s 2,240 s (2,232) $ (836,642) Adjus1Jncnts To Reconcile Net Income (Loss) To Net Cash

Provided By (Used In) Operating Activities: Depreciation and amortization 2,316 2,316

Change in Assets and Liabilities: Accounts receivable (2,37S) Inventories (2,06S) (2,06S) Prepaid expenses 6,719 Accounts payable (2,240) 679,965 Accrued expenses 433 433

Net Cash Provided By (Used In) Operating Activities s $ (IJ48} $ (ISS,860}

Cash Per Financial SlatclllenlS, Including lnvesuncnts $ $ 12,234 $ 1,064,221 Less: Non-Cash Equivalents Tolll!Cash s s 12J34 $ 1,064~1

94

CITY OF WAYCROSS, GEORGIA COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIAB~ITIES

FIDUCIARY FUNDS JUNE 30, 2016

MUNICIPAL POLICE TOTAL AGENCY COURT CONDEMNATION FUNDS

ASSETS Cash and cash equivalents s 41,115 s 451024 s 86139

Total assets 41115 45,024 86,139

LIABILITIES Refundable court bonds 41,llS 41,115 Seized funds held 45,024 45024

Total liabilities $ 41 l lS s 45024 s 86,139

95

SPECIAL REPORTS SECTION

Henderson & Godbee, LLP Certified Public Accountants and Business Consultants Members of American Institute ol'Certified Public Accountants• Georgia Society of Certified Public Accountants

Robcrl A. Goddnrd,.Jr., ("f'A (19-13-191!9) Gerald H. llcndc1·s1111, Cl',\ .I. Wcmkll Godbee. CPA \htrk S. lfoj!crs, Cl'.\ .James W. Godbee, .Jr .. < 'I',\ \htttn·cn I'. Collins, Cl'.\ K!"vin n. llil'rs, CPA. <YA I roy I>. Nl·11·ham. Cl'\ A11rnndn W. Shapurd. < l'A Scolt R. Simp~on. Cl'.\

INDEPENDENT AUDITOR'S REPORT ON

.J. Philip YotrnJ!, ("I':\ Billil' A. Baxter. C"l'A

\lac,\, .John~on. ('I'.\ l\ccky T. Collins, (·I'.\

K:1itl~ 11 [. I lannn~. <'I'.\ Caso,i1· I~. HllJ?l!l'lt, Cl'.\ Kain '\I. R1·1111rt1. «I'.\ .Jan·~ B. Pittman. Cl'.\

\I. Alli'<111 llutchin~. < ·p \

COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Mayor and City Commission Waycross, Georgia

We have audited, in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Waycross, Georgia as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the City of Waycross, Georgia's basic financial statements and have issued our report thereon dated November 30, 2016.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City of Waycross, Georgia's internal control over financial reporting to determine audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Waycross, Georgia's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Waycross, Georgia's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, that results in more than reasonable possibility that a material misstatement of the financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

I ' , . . c ~ q . 1 r. r-~, ~ : I ~' t 1 ---f - _' 1 i

www.hgncpa.com - W\\ w.facehook.comlhcndcrsonandgo<lhcc

City of Waycross, Georgia Page Two

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City of Waycross, Georgia's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

7~14~tiP Henderson & Godbee, LLP / Certified Public Accountants Valdosta, Georgia

November 30, 2016

CITY OF WAYCROSS, GEORGIA SPECIAL LOCAL OPTION SALES TAX

SCHEDULE OF PROJECTS CONSTRUCTED WITH SPECIAL SALES TAX PROCEEDS FOR THE FISCAL YEAR ENDED JUNE 30, 2016

ORIGINAL CURRENT ESTIMATED ESTIMATED PRIOR CURRENT

COST COST YEARS YEAR TOTAL

PR-8530-32 (299) Streets #4 $ 914,931 $ 914,931 $ 914,931 $ $ 914,931

PR-8530-38 (299) Streets #S 1,012,635 1,012,635 1,012,635 1,012,635

PR-8530-37 (299) Streets #6 1,153,080 1,153,401 1,153,401 1,153,401

PR-8530-40 (299) Elizabeth and Seminole 103,350 103,350 103,350 103,350

PR-8520-18 (299) Streets #7 1,240,571 1,387,968 1,387,968 1,387,968

PR-8520-18 (299) Streets #3 34,661 34,661 34,661 34,661

Hill&Williams 153,600 96,027 96,027 96,027

PR-8531-010-01 Streets #8 900,931 830,451 830,451 830,451

PR-8530-42 (299) Streets #9 1,302,458 1,308,197 1,308,197 1,308,197

PR-8531-0I0-01 Stonn Drain Improvements Riverside 153,600 162,100 162,100 162,100

Administrative 113,790 113,790 113,790

U.S. I Drainage 585,280 640,327 640,327 640,327

Hmzard Hill Drainage 141,235 145,299 145,299 145,299

Quartennen Street Drainage 79,720 164,713 164,713 164,713

Milling Street Drainage 34,657 34,657 34,657 34,657

Central Ave. & City Blvd. Drainage 551,405 623,291 623,291 623,291

Roberts Street Drainage 1,566 1,566 1,566

City Boulevard Mini Mall 5,888 S,888 5,888

Upchurch Street S20 S20 520

Miscellaneous 533 533 533

Suwanee Street Canal 1,735 1,735 1,735

Painting and Striping Streets 178,481 178,481 178,481

Misccllneous 6,976 6,976 6,976

Kroger Evaluation 2,328 2,328 2,328

Dorothy Street 4,200 4,200 4,200

CorTidor Z end Bennett Rood 300 300 300

Uvalde Street 9,358 9,358 9,358

Bcai:onHill 44,408 44,408 44,408

Nonhwood TCITllcc 23,078 23,078 23,078

98

ESTIMATED PERCENT AGE OF

COMPLETION

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00"A.

100.00"/o

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00"A.

100.00%

100.00%

100.00%

100.00%

100.00"/o

100.00%

100.00%





PR-6610-061-00 Contract #I IA. 966,708 1,082,951 1,082,951 1,082,951

PR-8351-025-01 Contract #10 1,199,857 1,363,237 1,363,237 1,363,237

PR-8351-022-01 Central Avenue Drainage 10,541 10,541 10,541

City Boulevard Phase II, IV 139,664 139,664 139,664

38 Connector Widening 524,340 524,340 524,340

PR-8351-036-01 Bazemore Plll'k 23,115 23,775 23,115

Drainage Ditch Project 52,559 52,559 52,559

PR-8531-023-0 I U.S. I Drainage - Baldwin Rental 43,225 43,225 43,225

Aerial Mapping 6,252 6,252 6,252

Senate Street 350 350 350

Shawnee Drive, Andrea Drive and Knight Avenue 3,736 3,736 3,736

Lee Avenue 14,718 14,718 14,718

Riverside, Dorothy, & Dlll'ling 7,600 7,600 7,600

Haines Street Improvements 5,598 S,598 5,598


Riverside Drive - Drainage 29,650 29,650 29,650

Milling - Cmswell Avenue 20,000 20,000 20,000

City Blvd - Lamar Johnson Project 21,008 21,008 21,008

CenU'lll Avenue & St Mary's St. Repairs 5,962 5,962 5,962

Traffic Light - Waycross College 6,000 6,000 6,000


Materials - Misc. Street Repair Jobs 128,513 128,513 128,513

Portable Sewer Video Camera, Custom Built Trailer and Honda Generator 30,000 30,000 30,000

Oakland Cemeteiy 5,467 5,467 5,467

Railroad Relocation Project 835,000 14,888 14,888 14,888

City Boulewrd Improvement Project - Phase 11- RP-8351-039-01 589,501 689,375 689,315 689,375

GIS Mapping Project 751,469 5,145 S,145 5,145

99

ESTIMATED PERCENTAGE OF

COMPLETION

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00"A.

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%





PR-6610-061-00-Contract #118 644,798 644,798 644,798

City Boulevard Phase IV - Project 8351--047-01 32,771 32,771 32,771

Downtown Drainage Project 472,890 472,890 472,890

Newton Phase II (City Match) 10,000 10,000 10,000

Water & Sewer Improvements - State Health Lab 35,248 35,248 35,248

Milling - Church Street 7,000 7,000 7,000

PR-8530-65 (Contract C35064-03-000-0) Carswell Avenue 390 390 390

Road Projects 476,836 476,836 476,836

City Blvd Phase IV Project #850..10-0104 1,995 1,995 1,995

Milling - Plant Ave 55,431 55,431 55,431

Plant Avenue 1,488 1,488 1,488

Eliza~th & Mary 39,456 39,456 39,456

Dorothy & Tebeau 19,599 19,599 19,599

Morningside Drive 198,258 198,258 198,258

Rail Relocation - Resurface Carswell, Elizabeth 420,194 420,194 420,194

Street Drainage lmprv. - Phase I 594,362 594,362 594,362

Contract 12 - Phase II 498,266 498,266 498,266

Clough & Garlington 155,935 155,935 155,935

Sewer & Water Improvements - Phase I 15,330 15,330 15,330

Sewer & Water Improvements - Phase II 7,475 7,475 7,475

2010 Street Rehab 5,540 5,540 5,540

Car5Wcll, Elizabeth, Pendleton (net costs not reimbursed) 331,108 331,108 331,108

Multi Use Trail &Trailhcad Project 233,949 189,173 44,776 233,949

2015 Striping Project 76,044 76,044 76,044

Thomas&Hill 131,219 131,219 131,219

2016 Street Repair 4,616 4,616 4,616

Alice, Hicks, & Walter 248,651 248,651 248,651

Totals s 12,704,649 s 18,112,179 s 17,606,873 s 505,306 s 18,112,179

100


COMPLETION

100.00%

100.00%

100.000./a

100.000.4

100.000.4

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.000.4

100.00%

100.00%

100.00%

101>.000.4

100.000.4

100.000./a

100.00%

100.00%

100.00%

100.00%

100.000.4

100.00%

100.00%

100.00%

CITY OF WAYCROSS, GEORGIA SPLOST 2008-2013




Roads and Streets s 5,381,812 $ 5,381,812 s 2,580,832 s 101,615 s 2,682,447

Public Buildings 3,600,000 3,600,000 3,162,610 96,769 3,259,379

Information Technology 75,000 75,000 60,921 60,921

Water and Sewer Rehabilitation and Expansion 2,000,000 2,000,000 291,195 164,959 456,154

Fire and Special Purpose Vehicles 1,350,000 1,369,332 1,369,332 l,369,332

Property Acquisition and Demolition 600,000 600,000 65,170 11,288 76,458

Downtown Development Authority 500,000 500,000 387,259 387,259

Totals $ 13,506,812 $ 13,526,144 $ 7,917,319 $ 374,631 $ 8,291,950

101


COMPLETION

49.84%

90.54%

81.23%

22.81%

100.00%

12.74%

77.45%

CITY OF WAYCROSS, GEORGIA SPLOST2014




Roads, Streets and Bridge Improvements

and Equipment $ 5,740,000 $ 5,740,000 $ $ $

Water and. Sewer Rehabilitation 1,000,000 1,000,000

Public Facility Improvements, Demolition and Acquistion 6,422,000 6,422,000 488,543 488,543

Public Safety and Special Purpose Vehicle Fleet 1,500,000 1,500,000 254,699 254,699

City Park Improvements 435,000 435,000 44,345 44,345

Development Authority Construction, Infrastructure Economic Development 250,000 250,000

Information Technology Equipment, Software and Training 125,000 125,000 6,709 6,709

Totals $ 15,472,000 $ 15,472,000 $ $ 794,296 $ 794,296

102


COMPLETION

0.00%

0.00%

7.61%

16.98%

10.19%

0.00%

5.37%

STATISTICAL SECTION (UNA~ITED)

YEAR AD MINI-ENDING STRATION POLICE

2006-07 $ 804,957 $ 3,709,439 2007-08 1,232,559 3,832,594 2008-09 1,061,867 3,860,390 2009-10 771,152 4,029,306 2010-11 897,784 4,036,887 2011-12 1,033,170 4,157,545 2012-13 384,104 4,270,214 2013-14 405,427 4,452,598 2014-15 283,553 4,260,355 2015-16 432,707 4,285,447

CITY OF WAYCROSS, GEORGIA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTIONS

LAST TEN YEARS

PUBLIC CULTURE/ COMMUNITY DEBT FIRE WORKS RECREATION DEVELOPMENT SERVICE

$ 2,613,791 $ 1,658,924 $ - $ 365,806 $ 113,424 2,903,904 1,795,500 455,539 150.331 2,939,425 1,819,800 441,297 171,784 3,052,124 1,874,302 439,794 317,108 3,141,257 1,920,034 432,868 202,833 3,197,362 1,935,956 436,918 277,190 3,340,926 2,042,825 602,535 332,524 3,343,602 2,117,111 635,020 326,200 3.333,561 2,087,023 634.332 218,479 3,199,237 1,756,299 660,733 171,939

103

CAPITAL OPERATING OUTLAY TRANSFERS TOTAL

$ 357,617 $ 108,500 $ 9,732,458 133,610 155,463 10,659,500

11,500 109,767 10,415,830 5,399 10,489,185

333,828 812 10,966,303 11,038,141 10,973,128 11,279,958 10,817,303 10,506.362

YEAR LICENSES& ENDING TAXES PERMITS

2006-07 $ 8,243,291 $ 816,330 2007-08 8,555,444 785,842 2008-09 8,400,912 798,119 2009-10 8,520,477 714,166 2010-11 9,069,250 749,155 2011-12 9,051,398 770,406 2012-13 8,918,796 755,674 2013-14 8,900,997 906,685 2014-15 8,909,974 858,686 2015-16 8,750,422 878,033

CITY OF WAYCROSS, GEORGIA GENERAL GOVERNMENTAL REVENUES BY SOURCE

LAST TEN YEARS

FINES& CHARGES FOR SALE OF CITY FORFEITURES SERVICES PROPERTY OTHER

$ 491,605 $ 17,130 $ - $ 186,537 494,025 16,328 196,775 540,292 18,982 144,207 552,168 18,095 94,696 489,052 21,853 263,328 533,204 19,071 62,322 442,755 31,162 244,612 372,867 26,326 238,652 410,224 30,473 195,670 301,312 32,930 199,522

104

INTER-GOVERNMENTAL

REVENUE TOTAL

$ 148,542 $ 9,903,435 403,026 10,451,440 211,019 10,113,531 234,031 10,133,633 148,856 10,741,494 124,052 10,560,453 133,130 10,526,129 131,691 10,577,218 132,386 10,537,413 135,531 10,297,750

YEAR PROPERTY ENDING TAXES

2006-07 $ 2,413,559 2007-08 2,468,371 2008-09 2,496,231 2009-10 2,792,354 2010-11 3,365,994 2011-12 2,994,483 2012-13 2,981,226 2013-14 2,911,447 2014-15 3,059,551 2015-16 3,043,302

CITY OF WAYCROSS, GEORGIA TAX REVENUES BY SOURCE

LAST TEN YEARS

FRANCHISE SALES REVENUES AND TAXES TAXES OTHER TAXES

$ 1,121,519 $ 3,241,110 $ 1,467,103 1,200,882 3,441,880 1,444,311 1,242,201 3,172,561 1,489,919 1,218,501 3,112,610 1,397,012 1,286,507 2,995,073 1,421,676 1,327,145 3,440,522 1,289,248 1,242,729 3,253,938 1,440,903 1,154,004 3,111,426 1,724,120 1,212,752 2,941,339 1,696,332 1,200,642 2,780,778 1,725,701

105

TOTAL TAXES

$ 8,243,291 8,555,444 8,400,912 8,520,477 9,069,250 9,051,398 8,918,796 8,900,997 8,909,974 8,750,423

YEAR TOTAL TAX CURRENT TAX ENDING LEVY COLLECTIONS

2006-07 $ 2,282,899 $ 2,101,860 2007-08 2,393,623 2,152,538 2008-09 2,375,272 2,206,788 2009-10 2,820,893 2,597,851 2010-11 2,863,300 2,654,519 2011-12 3,145,624 2,939,610 2012-13 3,135,872 2,878,145 2013-14 3,098,651 2,805,407 2014-15 3,064,531 2,893,054 2015-16 3,141,188 2,793,810

CITY OF WAYCROSS, GEORGIA PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN YEARS

PERCENT OF LEVY COLLECTIONS TOTAL COLLECTED PRIOR YEARS· COLLECTIONS

92.1% $ 89,771 $ 2,191,631 89.9% 107,443 2,259,981 92.9% 74,548 2,281,336 92.1% 105,102 2,702,953 92.7% 266,781 2,921,300 93.5% 54,873 2,994,483 91.8% 103,081 2,981,226 90.5% 106,040 2,911,447 94.4% 166,497 3,059,551 88.9% 249,492 3,043,302

106

TOTAL COLLECTIONS OUTSTANDING AS A PERCENT OF DELINQUENT

CURRENT LEVY TAXES

96.0% $ 159,996 94.4% 145,102 96.0% 176,232 95.8% 199,875

102.0% 173,016 95.2% 220,063 95.1% 304,046 94.0% 347,706 99.8% 333,243 96.9% 380,151

CITY OF WAYCROSS, GEORGIA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN YEARS

PERCENT OF YEAR ASSESSED APPRAISED APPRAISED

ENDING VALUE VALUE VALUE

2006-07 $ 254, 171,399 $ 635,428,498 40% 2007-08 270,926,543 677,316,358 40% 2008-09 272,045, 179 680, 112,940 40% 2009-10 272, 155,064 680,387,661 40% 2010-11 275,237,237 688,093,093 40% 2011-12 286,017 ,851 715,044,628 40% 2012-13 285,131,153 712,827,883 40% 2013-14 281,746,732 704,366,830 40% 2014-15 278,644,347 696,610,868 40% 2015-16 285,614,489 714,036,223 40%

107

CITY OF WAYCROSS, GEORGIA ASSESSED VALUE BY CLASS OF TANGIBLE PROPERTY (1)

LAST TEN YEARS

201S.16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10

Residential $107,279,240 $ 107,150,397 $ 103,696,046 $ 107,727,818 $ I 15,864,620 $ I 17,193,214 $ 118,401,524

Historic 821,070 22,901 951,090 22,901 27,340 326,736 327,098

Commercial 136,190,865 128,427, 105 131,515,432 131,110,417 121,756,710 128,320,875 126,834,786

Industrial 1,774,019 1,581,888 1,471,305 1,538,378 1,540,243 1,610,454 704,604

Agricultural 20,239 20,239

Conservation Use 179,260

Others I 1,305 2,287

Utilities 41,763,039 37,393,551 36,489,611 36,585,655 41,156,999 21,979,307 22,633,113

Motor Vehicles 12,604,590 18,355,270 21,365,230 21,365,230 20,133,720 21,026,070 22,824,480

Mobile Homes 969,619 973,543 1,048,003 1,069,291 1,020,165 1,182,293 1,078,759

Rwlroad Car (2)

301,613,246 293,927,181 296,536,717 299,4 I 9,690 301,499,797 291,638,949 292,804,364

Exemptions ( 1) (15,998,757) (15,282,834) (14,789,985) (14,288,537) (15,481,946) (14,890,049) (14,859,367)

Total (1) $ 285,614,489 $ 278,644,347 $ 281,746,732 $ 285,131,153 $ 286,017,851 $ 276,748,900 $ 277,944,997 s

( l) All amounts are shown at 40% estimated actual value. (2) Current railroad equipment valuation is omitted because City does not levy tax. (3) Information not available to split assessed property value between commercial and personal.

108

2008-09 2007-08 2006-07

$ 118,646,720 $ 112,976,349 $ 96,904,122

211,816 211,816 132,840

127,938,590 124,762,905 125,691,920

864,136 902,705 1,000,016

2,759 28,721

20,514,815 28,689,092 30,420,455

22,824,480 22,235,460 20,591,300

1,294,481 1,464,069 1,562,192

292,295,038 291,245,155 276,331,566

(14,868,088) (23,621,425) (13,158,455)

$ 277 ,426,950 $ 267,623,730 $ 263,173,111

YEAR ENDING

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

CITY OF WAYCROSS, GEORGIA PROPERTY TAX RATES

LAST TEN YEARS

109

CITY

10.226 9.998 9.998

10.998 10.998 10.998 10.998 10.998 10.998 10.998

CITY OF WAYCROSS, GEORGIA RATIO OF GENERAL BONDED DEBT TO ASSESSED VALUE AND BONDED DEBT PER CAPITA

LAST TEN YEARS

RATIO OF GROSS YEAR GROSS BONDED BONDED DEBT TO GROSS BONDED

ENDING POPULATION VALUE DEBT ASSESSED VALUE PER CAPITA

2006-07 15,333 $ 254,171,399 0.0% 2007-08 14,765 270,926,543 0.0% 2008-09 14,765 272,045,179 0.0% 2009-10 14,765 272,155,064 0.0% 2010-11 14,649 275,237,237 0.0% 2011-12 14,718 286,017,851 0.0% 2012-13 14,725 285,131,153 0.0% 2013-14 14,649 281,746,732 0.0% 2014-15 14,576 278,644,347 0.0% 2015-16 14,649 285,614,489 0.0%

110

YEAR ENDING

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

CITY OF WAYCROSS, GEORGIA RATIO OF DEBT SERVICE TO TOTAL GENERAL EXPENDITURES

LAST TEN YEARS

CAPITALIZED LEASES & EQUIPMENT FINANCING TOTAL TOTAL GENERAL PRINCIPAL & INTEREST PRINCIPAL INTEREST DEBT SERVICE EXPENDITURES

$ 113,424 $ - $ - $ 113,424 $ 9,623,958 150,331 150,331 10,659,500 171,784 171,784 10,415,830 317,108 317,108 10,489,185 202,833 202,833 10,966,303 277,190 277,190 11,038,141 332,524 332,524 10,973,128 326,200 326,200 11,279,958 218,479 218,479 10,817,303 171,939 171,939 10,506,362

t JI

PERCENT OF DEBT SERVICE TO GENERAL

EXPENDITURES

1.18% 1.41% 1.65% 3.02% 1.85% 2.51% 3.03% 2.89% 2.02% 1.64%

CITY OF WAYCROSS, GEORGIA COMPUTATION OF LEGAL DEBT MARGIN

AND DIRECT AND OVERLAPPING DEBT JUNE 30, 2016

ASSESSED VALUE $

DEBT LIMIT: 10% OF ASSESSED VALUE

LESS: DEBT APPLICATION TO DEBT LIMIT

GENERAL OBLIGATION INDEBTEDNESS

LEGAL DEBT MARGIN $

DmECT AND OVERLAPPING DEBT

CITY'S DmECT BONDED UEBT $

CITY'S OBLIGATION ON WATER AND SEWER LOAN

BONDED DEBT OF OTHER OVERLAPPING

GOVERNMENTS ASSESSED AGAINST CITY TAXPAYERS

TOTAL DIRECT AND OVERLAPPING DEBT $

112

285,614,489

28,561,449

5,569,969

22,991,480

5,569,969

5,569!969

YEAR

CITY OF WAYCROSS, GEORGIA SCHEDULEOFREVENUEBONDCOVERAGE

WATER AND SEWER LAST TEN YEARS

NET REVENUE GROSS AVAILABLE FOR DEBT

ENDING REVENUE EXPENSE(!) DEBT SERVICE · COVERAGE (2)

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

$ 5,760,083 $ 3,596,544 $ 2,163,539 1.01 5,873,224 3,984,088 1,889,136 1.72 5,724,891 3,969,709 1,755,182 1.60 5,892,904 4,142,252 1,750,652 1.59 5,896,074 4,115,475 1,780,599 1.71 5,931,630 4,220,357 1,711,273 1.55 6,109,343 4,738,325 1,371,018 1.32 6,037,587 4,787,467 1,250,120 1.23 6,077,034 4,925,900 1, 151, 134 1.15 6,287,997 5,093,794 1,194,203 1.21

(1) Net of depreciation and bond interest.

(2) Funds available divided by the highest combined principal and interest payments in any subsequent year for years; combined principal and interest payments in current year for . later years.

113

CITY OF WAYCROSS, GEORGIA PRINCIPAL WATER AND SEWER CUSTOMERS


WATER SEWER

1. Ware Correctional Institute $ 106, 113 $ 139,715 $

2. Mayo Clinic Health System 35,771 47,005

3. Waycross Housing Authority 20,774 27,286

4. Flanders Provision Co. 20,005 26,373

5. Ware County Commission 13,898 18,056

6. CSX Transportation 17,939 12,202

7. Baptist Village 29,816

8. Mayo Clinic - Express Care 12,307 16,034

9. Ware Manor Apartments 11,691 15,134

10. Kinsman Investments, LLC 11,064 13,966

Total $ 249,562 $ 345,587 $

114

TOTAL

245,828

82,776

48,060

46,378

31,954

30, 141

29,816

28,341

26,825

25,030

595,149

CITY OF WAYCROSS, GEORGIA PRINCIPAL TAXPAYERS


ASSESSED VALUE

1. CSX Transportation $ 33,476,798

2. Georgia Power Company 4,876,008

3. Walmart Stores East LP 3,554,787

4. Lowe's Home Centers, Inc. 3,435,522

5. Kolb & Wheeler & Walters 3,363,414

6. Walmart Stores, Inc. 2,951,744

7. BC Waycross Associates 2,648,429

8. Lowe's Home Centers, Inc. 1,709,605

9. The Kroger Company 1,639,301

10. Kemp Ridge Holdings, LLC 1,522,999

Total $ 59,178,607

115

TAX LEVIED

$ 368,178

53,626

39,096

37,784

36,991

32,463

29,127

18,802

18,029

16,750

$ 650,846

CITY OF WAYCROSS, GEORGIA MISCELLANEOUS STATISTICS

JUNE 30, 2016

Date of Incorporation Fonn of Government

Number of Employees (Excluding Police and Fire) Classified

Area in Square Miles Population - City

-County Daytime Population

City of Waycross Facilities and Services Miles of Streets Number of Street Lights Number of Traffic Lights Culture and Recreation

Community Centers Parks Park Acreage Cemeteries Cemetery Acreage Tennis Courts

Fire Protection Number of Stations Number of Fire Personnel and Officers Number of Calls Answered Number of Inspections Conducted

Police Protection Number of Stations Number of Police Personnel and Officers Number of Patrol Units Number of Law Violations

Physical Arrests Traffic Violations

Sewerage System Miles of Sanitary Sewers Miles ofStonn Sewers Number ofTreatment Plants Number of Service Connections Daily Average Treatment in Gallons Maximum Daily Capacity of Treatment Plant in Gallons

Water System Miles of Water Mains Number of Service Connections Number of Fire Hydrants Daily Average Consumption in Gallons Maximum Daily Capacity of Plant in Gallons

Facilities and Services Not Included in the Reporting Entity: Hospitals:

Number of Hospitals Number of Beds

116

1874 Manager

89

11.69 14,576 35,515 45,000

178 2,053

21

2 24

113.34 3

140

3 54

1,280 1,753

I 71 42

2,000 2,900

120 60

I 6,964

3,000,000 12,000,000

145 7,607 1,011

2,300,000 3,400,000

I 231

CITY OF WAYCROSS, GEORGIA SELECTED WATER AND SEWER INFORMATION


Water Accounts Active (Estimate) Sewere Accounts Active (Estimate)

Total Water Pumped- Gallons (Estimate) Total Water Consumed - Gallons (Estimate)

Total Water Billed Total Water Collected Total Sewer Billed Total Sewer Collected

117

$ $

$ $

6,248 5,730

837,614,000 693,479,776

2,448,334 2,532,465 2,677,132 2,623,542

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